Reports state that the Dutch chemicals group AkzoNobel would cut 3,500 jobs and postpone the remaining 1.6 billion euro of its share buyback plan. The postponement of the share buyback plan was due to the credit sending its share price to a three-year low. AkzoNobel recently bought Imperial Chemical Industries, which made it the worlds largest paint manufacturer. AkzoNobel consists of nineteen business units in decorative paints, performance coatings, and specialty chemicals. The 3,500 job cuts are estimated to save the company an estimated 100 million euro (Reuters).
In today’s economy we hear about stock markets crumbling, business going bankrupt, and government bailouts. AkzoNoble is one company who rises above these crises. Despite the bad economic news the paint and chemical giant has continued to have unprecedented growth thanks to the effort of its CEO Hans Wijers. Hans’ strategy of streamlining the company and focusing on specializing along with smart corporate buyouts of competing companies in the industry has cut any potential losses and netted AkzoNobel substantial gains.
In today’s world where the economy has now clearly entered a phase of lower growth, only lean companies succeed. Hans Wijers wants to ensure a spot in this group by starting a rigorous drive to further reduce AkzoNobel’s cost base. Wijer plans to achieve this additional growth despite the market in a broad plan:
“Improving operational performance:
AkzoNobel announced an EBITDA margin target of at least 14 percent by the end of 2011. This will be achieved by organic growth and selective acquisitions, delivering the ICI synergies faster (with 100 percent to be realized by 2010), driving margin management programs across the company, improving pricing and procurement rigorou ...