PPG is laying off 1,800 employees in the US and Europe to cut costs

PPG Industries will lay off 1,800 employees in the U.S. and Europe and close various facilities as part of a cost-cutting program, the paint and coatings maker said Thursday.

Shares of the Pittsburgh, Pennsylvania-based company rose 1.3% premarket.

PPG said the program focuses on reducing structural costs primarily in Europe and certain other global businesses, as well as other corporate costs following recent agreements to sell two of its businesses.

The company also announced Thursday that it would sell its architectural painting business in the U.S. and Canada to buyout firm American Industrial Partners for about $550 million.

PPG's architectural coatings business includes brands such as Dulux, Glidden, Olympic and Liquid Nails. The deal is expected to close in late 2024 or early 2025.

In August, the company announced it would sell its silica products business to Polish chemical company Qemetica for $310 million. The sale is expected to close in the last quarter of 2024.

“(The decision to cut jobs) is necessary to adjust our fixed cost base and right-size our company following these two business divestitures,” CEO Tim Knavish said in a statement.

Both deals followed strategic reviews announced earlier this year.

PPG expects annual pre-tax savings of approximately $175 million, including $60 million in 2025 once the cost reduction program is fully implemented.

The company said it would record a pretax charge of $250 million in the fourth quarter of 2024.

Separately, PPG missed Wall Street estimates for third-quarter profit on Wednesday, hurt by lower sales in its industrial coatings division.