PPG Industries (PPG, Financial), a leading paint and coatings manufacturer, has announced plans to cut 1,800 jobs across the United States and Europe and close several factories as part of its cost-reduction strategy. Additionally, PPG intends to sell its architectural coatings business in the U.S. and Canada, as well as its silica products segment. These transactions are expected to be finalized by late 2024 or early 2025.
The company anticipates that these cost-cutting measures will result in annual savings of approximately $175 million in pre-tax costs, including $60 million in 2025. PPG will record a $250 million pre-tax charge in the fourth quarter of 2024.
The primary goal of this strategy is to reduce structural costs in Europe and other global operations. The decision follows agreements to sell its architectural coatings business to American Industrial Partners for approximately $550 million and its silica products business to Polish chemical company Qemetica for $310 million. The architectural coatings segment includes well-known brands such as Dulux, Glidden, Olympic, and Liquid Nails.
CEO Tim Knavish stated that the workforce reduction aligns with the company’s efforts to adjust its fixed cost base and streamline its operational scale following a strategic review conducted at the beginning of the year.
Furthermore, PPG's recently reported third-quarter profits did not meet Wall Street expectations, partially due to decreased sales in its industrial coatings segment.
