Axalta Unveils Realignment, PA Office Closing
Global coatings company Axalta recently announced a realignment plan to “more closely align its global organization with its two global business segments to drive improved performance.” The notice comes after a larger restructuring program was announced over the summer.
According to the company, for the last seven years, Axalta has operated in a matrix organization consisting of regional leadership, global commercial business leadership and global functions where regional leadership had primary financial responsibility. The company now plans to simplify the structure to further empower global business units with full P&L responsibilities.
"With today's announcement, primary decision-making authority will reside with business unit leadership, supported by regional leadership and our global functions,” said Robert W. Bryant, Axalta President and CEO. “These changes are expected to increase accountability, accelerate decision making and improve execution, as well as support our objective to drive operational performance for sustainable growth and shareholder value creation."
As a part of the realignment, Axalta will close its Center City Philadelphia offices. Those employees will shift to either the new global headquarters at its existing offices in Glen Mills, Pennsylvania, or to Axalta's Global Innovation Center in the Philadelphia Navy Yard.
According to the company, Axalta's regional headquarters in Basel, Switzerland, and Shanghai, China, will continue to play important roles in the day-to-day management of people and resources, as key business leadership at both regional and global headquarters will be strengthened as part of this process.
Business leaders across the company's four end-markets within its Performance Coatings and Transportation Coatings segments will assume responsibility for strategy and execution with full accountability for financial results.
"Axalta's strategic review completed in March provided us with valuable insights into areas where we had the opportunity to simplify and streamline our decision-making processes. Aligning our organization more directly with our businesses will enable us to focus on our customers and better support our growth objectives in each of our markets,” Bryant said.
The realignment will be effective Jan. 1, 2021, and the Philadelphia office shifts will occur in mid-2021.
