PPG Industries Inc. is trimming 4 percent of its global workforce as the world’s largest paint and coatings company tries to reduce costs related to a spate of recent acquisitions.
The Downtown-based company said it was cutting 1,700 jobs as part of a restructuring that also includes reducing production capacity. About 40 of PPG’s 2,500-person workforce in Pittsburgh will lose jobs, the company said.
PPG is aiming to achieve $100 million to $105 million in annual pretax savings by 2017 from the restructuring. Further details of the capacity reductions were not available, the company said.
PPG spent about $2.4 billion buying companies last year, part of a long-term strategy to grow through acquisitions.
Acquisitions remain a focus for PPG Industries Inc., which has $3 billion in cash that it can spend to increase performance, CEO Charles E. Bunch said Thursday when the company reported a 64 percent jump in third-quarter profit.
“We have a very active acquisition pipeline,” Bunch said. “Including the pending acquisition of Comex, we will likely spend at or above the top end of our previously announced range of $3 billion to $4 billion of cash in 2014 and 2015 on acquisitions and share repurchases.”
PPG’s latest deal is the purchase of Consorcio Comex S.A. de C.V., a leading paint company in Mexico, for $2.3 billion. The deal announced June 30 is expected to be completed by Dec. 31.