PPG Industries cuts 2,000 jobs in restructuring

PPG Industries Inc, yesterday said that it will cut 2,000 jobs, as the US-based paints, chemicals and glass maker experiences a fall of demand for coatings in Europe and expects the economic recovery to be slow in that region.

The job cuts represent a little more than 5 per cent of PPG's global workforce of about 38,400, and the Pittsburgh-based company expects to book a pretax restructuring charge of $208 million in the first quarter and projected annual savings of about $140 million after 2012.

Most of the job reductions will come from its global architectural-coatings business and other operations in Europe, including some from its 2007 acquisition of Dutch paints maker Sigma-Kalon, and Dyrup, a Danish coatings business that PPG had purchased earlier this year. (See: Acquisitive PPG Industries buys paints, coatings group SigmaKalon from Bain Capital)

"These cost-reduction actions, while always difficult decisions, are needed to ensure that our cost structure is appropriate for business conditions and that all of our operations remain competitive globally," said Charles Bunch, CEO of PPG in a statement.

Bunch said while business was strong in North America and Asia during the first quarter, demand for coatings in Europe "was muted, and we expect economic recovery to occur slowly in that region.''

PPG, also the world's leading supplier of automotive and industrial coatings, has been cutting costs and raising prices in order to combat pressures from high commodity costs and slowdown of the global economy.