PPG Industries (PPG.US) lays off 1,800 employees and sells business in Europe and the US and is expected to save US$175 million a year

The Zhitong Finance App learned that PPG Industries (PPG.US), a well-known paint and coatings manufacturer, announced that it will cut 1,800 employees and close some factories in the US and Europe as part of its cost reduction plan. In addition, the company also plans to sell its architectural coatings business in the US and Canada, as well as its silica products business. These transactions are expected to be completed by the end of 2024 or early 2025. PPG anticipates that when fully implemented, these cost reduction measures will save approximately $175 million in pre-tax expenses each year, including $60 million in 2025. The company will record $250 million in pre-tax expenses in the fourth quarter of 2024.

According to information, PPG's cost reduction plan is mainly aimed at reducing the structural costs of its European and some other global businesses. The company said the decision was made after two recent business sale agreements, namely the sale of the architectural coatings business to American Industrial Partners for about US$550 million and the sale of the silica products business to Polish chemical company Qemetica for US$310 million. PPG's architectural coatings business includes well-known brands such as Dulux, Glidden, Olympic, and Liquid Nails.

CEO Tim Knavish (Tim Knavish) mentioned in a statement that after the divestment of these two businesses, the layoffs were to adjust the company's fixed cost base and rationalize the company's size. These measures were all decisions made by the company after a strategic evaluation at the beginning of the year.

Additionally, PPG's third-quarter profit announced on Wednesday fell short of Wall Street expectations, partly due to declining sales in the industrial coatings division.