A major employer with a base in Wales is set to cut 2,000 jobs in a bid to reduce costs. Dulux, the company behind the iconic paint brand, has a plant in Deeside and a total of 15 sites across the UK and Ireland. Their workforce in the UK and Ireland totals around 3,500 employees. The company plans to make these job cuts by the end of 2025 as part of efforts to improve operational efficiency.
The Dutch conglomerate, operating in 150 countries, aims to “streamline” its managerial structure through these layoffs. This decision will affect more than 5% of its global workforce, which currently stands at 35,700 employees. While the specific number of UK employees impacted by this move has not been disclosed, the company is taking these measures amidst challenges in the building materials sector, including inflation and rising wages.
Despite these financial pressures, AkzoNobel, the parent company of Dulux, reported an increase in pre-tax profits for the first half of the year, with figures rising by over a quarter to 496 million euros (£413 million). The Chief Executive, Greg Poux-Guillaume, highlighted the company’s growth ambitions, aiming to accelerate profitable growth by optimizing their functional organisation to navigate through volatile markets and counter challenges such as increasing labour costs.
The company’s cost-saving measures come as part of its broader strategy to adapt to market conditions and sustain growth. This development underscores the ongoing challenges faced by businesses in managing costs and operations amidst a changing economic landscape.