(Bloomberg) -- Europe’s biggest paint maker Akzo Nobel NV said it will cut 2,000 jobs by the end of next year to improve profitability and reduce costs.
The maker of Dulux Paints aims to accelerate decision making, boost profitable growth and “offset headwinds such as rising labor cost,” according to a statement on Tuesday. The job cuts amount to nearly 6% of its 35,700 employees.
Akzo Nobel’s shares rose as much as 2.5% to €60.06 apiece at 9:02 a.m. in Amsterdam. The stock has dropped 20% so far this year.
This the latest move by the Amsterdam-based company to navigate softening demand. It began a program to boost the efficiency of its manufacturing and supply chain late last year with the target of generating €250 million in savings.
Akzo Nobel’s second-quarter earnings missed estimates due to inflation and lower volumes in some markets. In July, the company decided to keep a conservative outlook for the full year as the benefit of lower raw-material costs began to fade and the market environment remains weak.
(Updates with details and share move)
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