French glass maker Saint-Gobain cutting jobs
French building materials giant Compagnie de Saint-Gobain SA said it would slash 6,000 jobs.
By Agencies |
PARIS: French building materials giant Compagnie de Saint-Gobain SA said it would slash 6,000 jobs as part of a euro435 million ($682 million) cost-cutting plan to adapt to worsening global economic conditions.
Saint-Gobain, a leading supplier of glass to the automotive and building industries, said 4,000 of the job cuts would be made this year, accounting for most of the euro300 million ($470 million) cost savings this year.
Most of this year's cuts will be made in the U.S., 1,550 jobs; the U.K., 1,100 jobs; and Spain, 270 jobs, spokeswoman Sophie Chevallon said Friday. In the rest of Europe, cuts will be made through the end of temporary work contracts, a hiring freeze and the non-replacement of departing employees, Chevallon said.
Saint-Gobain employs about 210,000 people worldwide. The company also cut its earnings target for this year, saying it now expects to make operating and net profit close to last year's level. In April, Saint-Gobain said that despite the "more challenging economic conditions" it was confident of achieving modest growth in operating and net profit.
Last year, Saint-Gobain made net profit of euro2.1 billion ($3.3 billion at current rates) and operating profit of euro4.1 billion ($6.4 billion), on sales of euro43.4 billion ($68 billion).
Saint-Gobain "does not expect the U.S. economy to stage a recovery" in the second half, and "assumes that the construction market in Western Europe will continue to lose steam," the company said in a statement late Thursday.
Saint-Gobain also reported first half net profit rose 3.2 per cent to euro1.1 billion ($1.7 billion) on sales of euro22.1 billion ($34.7 billion).
Saint-Gobain, a leading supplier of glass to the automotive and building industries, said 4,000 of the job cuts would be made this year, accounting for most of the euro300 million ($470 million) cost savings this year.
Most of this year's cuts will be made in the U.S., 1,550 jobs; the U.K., 1,100 jobs; and Spain, 270 jobs, spokeswoman Sophie Chevallon said Friday. In the rest of Europe, cuts will be made through the end of temporary work contracts, a hiring freeze and the non-replacement of departing employees, Chevallon said.
Saint-Gobain employs about 210,000 people worldwide. The company also cut its earnings target for this year, saying it now expects to make operating and net profit close to last year's level. In April, Saint-Gobain said that despite the "more challenging economic conditions" it was confident of achieving modest growth in operating and net profit.
Last year, Saint-Gobain made net profit of euro2.1 billion ($3.3 billion at current rates) and operating profit of euro4.1 billion ($6.4 billion), on sales of euro43.4 billion ($68 billion).
Saint-Gobain "does not expect the U.S. economy to stage a recovery" in the second half, and "assumes that the construction market in Western Europe will continue to lose steam," the company said in a statement late Thursday.
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Saint-Gobain also reported first half net profit rose 3.2 per cent to euro1.1 billion ($1.7 billion) on sales of euro22.1 billion ($34.7 billion).
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