PPG Industries in Europe and America is laying off 1800 employees and selling its business, expecting to save $175 million annually
PPG Industries announced plans to cut 1,800 employees and close some factories in the United States and Europe as part of a cost-cutting plan, expecting to save $175 million annually. The company also plans to sell its architectural coatings and silica products business in the United States and Canada, with the transaction expected to be completed by the end of 2024 or early 2025. This move aims to reduce structural costs, with the CEO mentioning that the layoffs are to adjust fixed cost base. PPG's third-quarter profits fell short of expectations, partly due to a decline in industrial coatings sales
According to the Zhitong Finance APP, the well-known paint and coating manufacturer PPG Industries (PPG.US) announced that it will cut 1,800 employees in the United States and Europe and close some factories as part of its cost reduction plan. In addition, the company also plans to sell its architectural coatings business in the United States and Canada, as well as its silica products business, with these transactions expected to be completed by the end of 2024 or early 2025. PPG expects that after the full implementation of these cost reduction measures, it can save approximately $175 million in pre-tax expenses annually, including $60 million in 2025. The company will record $250 million in pre-tax expenses in the fourth quarter of 2024.
It is understood that PPG's cost reduction plan is mainly aimed at reducing its structural costs in Europe and some other global businesses. The company stated that this decision was made after recently reaching two business sale agreements, namely selling the architectural coatings business to American Industrial Partners for about $550 million and selling the silica products business to the Polish chemical company Qemetica for $310 million. PPG's architectural coatings business includes well-known brands such as Dulux, Glidden, Olympic, and Liquid Nails.
CEO Tim Knavish mentioned in a statement that the layoffs after divesting these two businesses are to adjust the company's fixed cost base and rationalize the company's scale. These measures were all decisions made by the company after conducting a strategic review at the beginning of the year.
In addition, PPG's third-quarter profits, announced on Wednesday, did not meet Wall Street expectations, partly due to a decline in sales in the industrial coatings division
