Europe's biggest paintmaker AkzoNobel set to cut 2,000 jobs

Dutch paint manufacturer AkzoNobel has announced it is to cut 2,000 jobs by the end of next year.

The job losses equate to around 6% of its global workforce, and it's not yet clear how many cuts will affect Dutch workers.

"Over the last three quarters, we have demonstrated our ability to grow. We aim to accelerate profitable growth by optimising our functional organisation to become more agile in volatile markets and offset headwinds such as rising labour cost," said AkzoNobel CEO, Greg Poux-Guillaume in a company statement.

"This initiative is designed to simplify operations, accelerate decision-making, and streamline the company's management structure."

Known for brands such as Dulux, Sikkens, and Flexa, AkzoNobel currently employs staff in more than 150 countries.

Tuesday's statement comes after similar cost-cutting measures announced earlier this year.

The firm announced in May that it was closing manufacturing sites in the Netherlands, Ireland, and Zambia and would transfer production to other locations.

AkzoNobel noted at that time that the step was "the first part of a multi-year industrial efficiency plan to be fully finalised by the end of 2026".

At the end of 2023, AkzoNobel also flagged its intention to trim expenses, claiming that it wished to save €250m over three years.

The move comes in response to a post-pandemic slowdown in demand.

According to the firm's second quarter results, adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at €400m.

While this was higher than the €397m recorded a year earlier, the total fell short of analysts' expectations.

In response to the earnings report, the company said expected 2024 EBITDA to be at the lower end of its forecast of €1.50bn to €1.65bn.

Shares in AkzoNobel were up 0.82% in daily trading on Tuesday as of around 11h15 CEST.