Consistent with its Strategy 2022, LafargeHolcim announced that it will close its head offices in Paris and Zurich by the end of the year, eliminating 200 jobs as part of a cost-cutting drive. Remaining positions in Switzerland will be moved to the company’s Holderbank site and a new corporate office in Zug. In Paris, remaining positions will be moved to Clamart, a commune in the southwestern suburbs of the city.
“This painful but necessary simplification step is key to creating a leaner, faster and more competitive LafargeHolcim,” said Jan Jenisch, chief executive officer of LafargeHolcim.
According to the plan, 107 jobs in the Zurich area and Holderbank will be impacted and 97 in Paris. No other sites in France will be affected by this plan.
The proposals are a key component of LafargeHolcim’s Strategy 2022 launched in March 2018, which will enable the company to grow and vigorously capture market opportunities by moving closer to customers in key countries. The simplified corporate organization outlined in the plan will help facilitate this shift. The company is on track to reaching the previously announced $402 million SG&A cost-saving target by Q1 2019. The proposed changes will also help sustain competitiveness and investment in innovation.
The plan is subject to required consultation and regulatory processes in each country and the company will endeavor to minimize the impact on employees and will offer support at affected sites.
The proposals are in line with other measures that have already been implemented. These include the closure of corporate offices in Singapore and Miami, the elimination of one layer of management and the near doubling of countries reporting directly to the slimmed down Group Executive Committee.