PPG Industries, a major maker of paints and coatings, has announced that it will lay off about 1,800 employees. This decision is part of a plan to cut costs and improve overall efficiency. Most of the job cuts will happen in the United States and Europe.
These layoffs are part of a larger effort to reduce operating expenses because PPG is facing some financial difficulties. CEO Tim Knavish said these cuts are necessary to “right-size” the company after recent changes in its business strategy.
In addition to the layoffs, PPG will sell its architectural coatings business in the U.S. and Canada to a private equity firm called American Industrial Partners (AIP) for $550 million. This business includes well-known brands like Glidden, Liquid Nails, and Olympic, which together made about $2 billion in sales last year. The sale is expected to be completed by late 2024 or early 2025.
This announcement comes after PPG reported lower-than-expected earnings for the third quarter, showing a net income of $468 million on revenues of $4.58 billion. The company is also dealing with a difficult housing market, where home sales have recently dropped by 2.5%, and mortgage rates are rising.
Even with these challenges, Knavish assured everyone that the company will keep investing in important areas and working on growth. He feels positive about PPG’s future and the good things that might come from these changes.
PPG’s recent decisions aim to make the company more efficient and better prepared for future challenges. While the job cuts are unfortunate, PPG hopes these changes will help the company grow in the long run.
