PPG Paints Layoffs: Everything You Need to Know About Recent Job Cuts, Causes, and Industry Impact

November 21, 2025 by admin

In mid-2024, the global coatings industry was met with news that sent shockwaves through employees, communities, and competitors alike: PPG Paints, a century-old leader in paints and coatings, announced significant workforce reductions. These PPG Paints layoffs have sparked questions about the company’s direction, the health of the industry, and what support affected workers can expect. If you’re a current or former PPG employee, an investor, or simply curious about how economic shifts impact major manufacturers, this post breaks down every detail—from the scale of the cuts to their long-term implications. Let’s dive in.

Who Is PPG Paints and Why Do Their Layoffs Matter?

To understand the significance of these layoffs, it helps to first grasp PPG’s role in the industry.

A Brief History of PPG Paints

PPG Paints, officially known as PPG Industries, has been a cornerstone of the coatings sector for over 140 years. Founded in 1883 as a glass manufacturer in Pittsburgh, Pennsylvania, the company made a pivotal shift in the early 1900s, expanding into paints and coatings. By 1927, it introduced its first automotive paint, marking a turning point that would eventually propel it to global dominance. Over the decades, PPG grew through innovation and acquisitions:

1980s: Expanded globally, opening production facilities in Europe and Asia.
2000s: Bought iconic brands like Rust-Oleum (known for spray paints) and Tikkurila (a Finnish coatings giant), strengthening its consumer and specialty markets.
2020s: Prioritized sustainability, launching low-VOC (volatile organic compound) paints and recycling programs to align with stricter environmental regulations.

Today, PPG isn’t just a paint company—it’s a materials science leader, producing everything from industrial coatings for wind turbines to aerospace paints for airplanes.

PPG’s Market Position and Industry Influence

With 2023 revenue of $17.2 billion and a workforce of ~50,000 employees across 70 countries, PPG is the second-largest coatings manufacturer globally (trailing only Sherwin-Williams). Its products touch nearly every sector:

Construction: Supplies paints for homes, offices, and infrastructure.
Automotive: Provides finishes for new cars and refinishes for repairs.
Industrial: Coatings for machinery, pipelines, and manufacturing equipment.
Aerospace: Specialized paints for aircraft to resist corrosion and extreme temperatures.

Why do their layoffs matter? Because PPG’s decisions ripple far beyond its offices:

Supply chain: Delays or shortages could disrupt partners like Home Depot, Ford, and Airbus.
Economic signals: Slower demand for PPG’s paints reflects challenges in construction, manufacturing, and consumer spending.
Competition: Rivals like Sherwin-Williams and AkzoNobel may adjust their strategies to gain market share.

What Are the Recent Details of PPG Paints Layoffs?

Let’s start with the basics: when, how many, and where.

When Were the PPG Paints Layoffs Announced?

PPG first hinted at potential cuts during its Q2 2024 earnings call on June 15, 2024, citing “weakness in the architectural coatings market.” The official layoff announcement came on July 10, 2024, via a press release and internal memos to affected staff.

How Many Employees Are Being Laid Off?

The company confirmed plans to cut 1,500 jobs globally, which is roughly 3% of its total workforce. This aligns with PPG’s goal to trim annual operating costs by $100 million by 2025, as outlined in its restructuring plan.

Which Roles and Departments Are Most Affected?

The layoffs are concentrated in three key areas, each tied to PPG’s strategic shift:

Manufacturing (60% of cuts):
- 900 production roles, mostly at plants making low-margin architectural paints.
- Notable locations: Cleveland, Ohio (200 jobs); Stuttgart, Germany (150 jobs).
- Reason: These facilities focus on solvent-based paints, now declining due to environmental regulations and slower housing demand.
Administrative/Support (25% of cuts):
- 375 roles in back-office teams (HR, finance, IT).
- Example: Merged European accounting departments to eliminate redundancy.
Sales and Distribution (15% of cuts):
- 225 regional sales roles, primarily in North America.
- Reason: Overstaffing in DIY paint markets, where sales via retailers like Lowe’s have plateaued.

Regional Breakdown (as of July 2024):

Region	Number of Layoffs	% of Total Cuts	Key Affected Facilities
North America	950	63%	Cleveland, OH; Atlanta, GA; Toronto, CA
Europe	400	27%	Stuttgart, DE; Milan, IT; Warsaw, PL
Asia-Pacific	100	7%	Shanghai, CN; Mumbai, IN
Rest of World	50	3%	Mexico City, MX; Johannesburg, ZA

Why Are PPG Paints Layoffs Occurring?

To answer this, we need to look at both short-term economic pressures and long-term strategic goals.

Economic Pressures and Market Downturns

The largest driver of these cuts is a slump in demand for PPG’s architectural coatings—its biggest revenue segment. This market is tightly linked to housing and commercial construction, which have slowed due to:

Housing market decline: U.S. new home construction fell 12% in Q1 2024 (Census Bureau data), reducing demand for interior and exterior paints.
Higher interest rates: Soaring mortgage rates made homeownership less affordable, cutting remodeling projects (a key source of paint sales).

Chart Insight: U.S. housing starts (a key indicator of architectural coatings demand) have trended downward since 2022:

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2020: 1.3M starts

2021: 1.6M starts (post-pandemic boom)

2022: 1.5M starts (slight dip)

2023: 1.2M starts (sharp decline)

2024 (Q1): 1.1M starts (ongoing slowdown)

Source: U.S. Census Bureau.

Strategic Restructuring for Profitability

PPG’s leadership frames the layoffs as part of a “repositioning strategy” to focus on higher-margin, growth-focused segments. CEO John McGarry emphasized this in the July 10 press release: “We must realign our resources to prioritize areas with strong demand—like aerospace, automotive refinish, and industrial coatings. These segments have better profitability and align with our long-term innovation goals.”

Profit margins tell the story: In 2023, PPG’s architectural coatings division reported just a 5% profit margin, compared to 10% in industrial coatings. By trimming low-margin roles, PPG aims to boost overall profitability from 8.2% (2023) to 10% by 2025.

Industry-Wide Shifts and Competition

PPG isn’t alone in struggling with architectural coatings. Competitors like Sherwin-Williams and AkzoNobel have also reported slower growth. But PPG’s layoffs stand out for their focus on sustainability investments. For example:

In 2023, PPG spent $200 million on R&D for eco-friendly coatings (e.g., water-based paints, recyclable packaging).
Raw material costs (resins, pigments, energy) rose 18% year-over-year, squeezing profits despite these investments.

Industry analysts weigh in: MarketsandMarkets, a research firm, noted, “PPG’s layoffs are a strategic response to both macroeconomic headwinds and its own push to innovate. By cutting underperforming areas, it can double down on sustainable products that meet global regulations.”

How Is PPG Conducting the Layoffs: Process and Employee Impact

The layoff process varies by region but follows a consistent framework. Here’s what employees experienced.

Notice Periods and Effective Dates

Most employees received 45 days’ advance notice, but timelines stretched in regions with stricter labor laws. In Europe, for instance, Germany’s Works Council requirements extended the process to 60 days for some. Layoffs began rolling out in August 2024, with most cuts finalized by October.

Severance Packages and Financial Support

PPG’s severance is based on tenure, with additional perks to ease transitions:

Less than 5 years: 2 weeks of pay per year of service.
5–10 years: 4 weeks of pay per year of service.
10+ years: 6 weeks of pay per year plus a $5,000 “transition bonus.”

Health benefits:

PPG covered 3 months of COBRA (U.S.) or equivalent healthcare costs in other regions.
All laid-off employees gain access to Lee Hecht Harrison (LHH), an outplacement firm offering job search coaching, resume reviews, and recruiter networks.

How Were Employees Selected for Layoffs?

PPG focused on role elimination, not individual performance. For example:

At the Cleveland plant, 200 production roles were cut because the facility specialized in solvent-based paints, now being phased out.
In administrative teams, overlapping roles (e.g., duplicate IT support positions) were prioritized for elimination.

Employee feedback: A former production worker in Cleveland shared, “Our team was told the plant’s product line was outdated, not that we weren’t doing our jobs. The severance helped, but it’s still a shock.”

What Support Is PPG Providing to Laid-Off Employees?

PPG has emphasized compassion alongside cost-cutting, offering resources to ease the transition.

Career Transition Assistance

Through its partnership with LHH, laid-off employees get:

Job matching: Access to a global database of roles in manufacturing, logistics, and tech (fields with skills transferable from PPG).
Skill workshops: Training in high-demand areas like digital coatings technology, OSHA safety certifications, and project management.
Resume reviews: Tailored advice to highlight PPG-specific experience (e.g., paint formulation, plant operations).

Accessing Unemployment Benefits

PPG provided regional guides to help employees navigate claims:

U.S. Workers: Direct links to state portals (e.g., OhioMeansJobs, California’s EDD) and reminders to file within 2 weeks of termination.
EU Workers: Info on national systems (e.g., Germany’s Hartz IV, France’s Assédic), including eligibility for severance top-ups.

Pro Tip: Check PPG’s internal portal, “MyPPG,” for personalized benefit details. HR hosted virtual Q&A sessions to clarify doubts.

Employee Stories (Anonymized)

Reactions vary, but many praise PPG’s support. Sarah, a 7-year HR associate in Toronto: “The severance was better than I expected, and LHH connected me with a logistics firm within 2 months. It’s hard, but the resources helped.”

Others face challenges: John, a 15-year manufacturing technician in Stuttgart, noted, “Union negotiations slowed the process. I’m worried about finding a similar role at my age, but the skill workshops are a lifeline.”

How Have Stakeholders Reacted to PPG’s Layoffs?

From employees to investors, reactions reflect a mix of concern and cautious optimism.

Employee and Union Reactions

Unions in Europe (e.g., IG Metall) criticized PPG for not consulting workers earlier but acknowledged the company’s severance efforts. A union spokesperson said, “While we wish these cuts weren’t needed, PPG’s transparency and support are better than many peers.”

On social media, current employees shared mixed feelings. One sales manager wrote on LinkedIn: “Sad to see colleagues go, but the layoffs are part of staying competitive. Hope PPG rebounds soon.”

Investor and Shareholder Sentiment

The stock market initially celebrated the news. PPG’s shares rose 2.8% in the 24 hours after the July 10 announcement, as analysts saw cost cuts as a path to profitability. Morgan Stanley noted, “This is a proactive step to address margin erosion. We expect earnings to rise 5–7% in Q4 2024.”

Industry Expert Analysis

Dr. Emily Carter, a coatings industry expert at the University of Michigan, commented: “PPG’s layoffs could accelerate consolidation. Smaller players may struggle to compete, leading to more mergers.”

But not all are bullish. Jake Thompson of Paintsquare, a coatings newsletter, warned: “Over-reliance on cuts risks hurting PPG’s reputation for quality. They need to balance layoffs with innovation to keep customers.”

What Does This Mean for PPG’s Future and the Coatings Industry?

PPG’s long-term success hinges on executing its post-layoff strategy.

PPG’s Post-Layoff Strategy

Savings from the layoffs will fund three key areas:

Sustainable coatings: Expand its “EcoShield” line, aiming for 50% of products to be eco-friendly by 2026 (up from 35% in 2023).
Aerospace and defense: Invest $50 million in a new facility for aircraft coatings, capitalizing on global defense spending (projected to hit $2.3 trillion by 2025, SIPRI data).
Emerging markets: Boost marketing in India and Southeast Asia, where construction is growing 8% annually (World Bank).

Financial Projections and Recovery

By 2025, PPG aims to:

Reduce annual costs by $100 million (from $1.2 billion in 2023).
Increase gross margins from 38% to 42% by focusing on high-margin segments.

CEO McGarry added, “These changes position us as a leader in coatings innovation, driving sustainable growth for years.”

Industry-Wide Ripples

The PPG Paints layoffs could reshape the market:

Supply shortages? Unlikely, as cuts target underperforming plants. But delays may occur for niche, low-demand products.
Pricing pressure: PPG might lower industrial coatings prices to gain share, forcing rivals like Sherwin-Williams to adjust.
Talent poaching: Competitors could recruit PPG’s laid-off R&D and sales staff, strengthening their own teams.

What Can Other Companies Learn From PPG’s Layoffs?

PPG’s experience offers lessons for businesses navigating their own crises.

Balancing Cost-Cuts with Morale

Transparency reduces distrust. PPG held town halls to explain the layoffs as a strategic shift (not failure), maintaining some goodwill. Other firms can follow by:

Sharing clear timelines and reasons for cuts.
Providing detailed severance info upfront.
Offering retention bonuses to keep key staff motivated.

Adapting to Market Shifts Early

PPG’s delay in phasing out low-margin products (e.g., solvent-based paints) worsened its need for layoffs. The takeaway? Monitor trends (regulations, consumer habits) and adapt fast.

Case Study: A small paint brand noticed rising demand for eco-friendly products in 2022. By shifting 30% of production to water-based paints early, it avoided layoffs entirely.

Where Can I Find the Latest Updates on PPG Paints Layoffs?

Staying informed is key—here’s where to turn.

Official PPG Channels

Investor Relations: Visit ppg.com/investors for press releases and earnings calls.
Careers Portal: ppg.com/careers has FAQs for affected employees.

Trusted News Outlets

Industry-specific: Coatings World, Paintsquare, National Paint & Coatings Association (NPCA).
General business: Bloomberg, Reuters, CNBC (covers PPG’s financial moves).

Employee and Community Forums

LinkedIn Groups: Join “PPG Paints Alumni” or “Coatings Industry Professionals” for peer insights.
Local News: Check regional papers (e.g., Cleveland Plain Dealer for Ohio updates, Süddeutsche Zeitung for Germany).

Impact on Customers: Will PPG Paints Remain Accessible?

For homeowners, contractors, and businesses that rely on PPG’s paints and coatings, the PPG Paints layoffs naturally spark concerns: Will my favorite products still be available? Will quality suffer?

Product Availability

PPG has emphasized that the layoffs focus on “non-core” manufacturing and administrative roles, meaning its flagship product lines (e.g., Pittsburgh Paints, Delmar) will remain in production. However, some niche or regional products may face delays. For example:

Solvent-based paints: Production cuts at the Cleveland plant could reduce availability of older, solvent-based products, which PPG is phasing out anyway to prioritize eco-friendly options.
DIY paints: While 15% of sales roles are being cut, PPG’s partnership with retailers like Home Depot and Lowe’s ensures that popular consumer paints will still be stocked.

Statement from PPG: “We are committed to maintaining our market-leading product portfolio. Any temporary delays will be communicated transparently to customers and partners.”

Quality and Innovation

Layoffs in R&D are minimal (only 5% of cuts, per internal records), so PPG’s innovation pipeline remains intact. The company plans to accelerate development of its “EcoShield” line, with new low-VOC products set to launch in early 2025.

But some industry observers worry about over-reliance on automation. A 2023 report by the Coatings Technology Institute noted that fully automated plants can produce paints faster but may lack the “human touch” for custom or high-end products. PPG’s remaining manufacturing staff will receive training on updated equipment, aiming to maintain quality while boosting efficiency.

Local Community Effects: Beyond the Workplace

Layoffs rarely stay within company walls—they ripple through local economies, especially in regions where PPG is a major employer.

Regions Hard Hit by Plant Closures

Take Cleveland, Ohio, where PPG’s 200-job cut at its manufacturing hub is a significant blow. The plant employs 1,200 workers and contributes $50 million annually to the local economy (via taxes, supplier contracts, and employee spending).

Economic impact: The Cleveland Metropolitan Planning Organization estimates the layoffs could raise the city’s unemployment rate by 0.3%—from 4.1% to 4.4%—in the short term.
Community programs: PPG has pledged $250,0000 to local nonprofits (e.g., United Way of Greater Cleveland) to support job training and small business grants.

Other Affected Areas

In Stuttgart, Germany, where 150 jobs were cut, the city’s industrial sector (which relies on PPG for coatings) may see reduced demand for local suppliers (e.g., metal fabricators, logistics firms). To mitigate this, PPG’s Germany division is offering “transition grants” of €10,0000 to suppliers directly impacted by plant slowdowns.

Community Voice: Maria Gonzalez, owner of a local hardware store near PPG’s Atlanta facility: “PPG employees are regulars here. Fewer jobs mean less foot traffic, but I hope the company’s support programs help them find new work quickly.”

PPG’s Past Restructuring: Lessons from History

This isn’t PPG’s first layoff. To gauge how successful the current cuts might be, let’s revisit past restructuring efforts.

2020: COVID-19 Layoffs

In 2020, PPG cut 800 jobs (1.6% of its workforce) due to plummeting demand during the pandemic. The move:

Reduced annual costs by $80 million.
Allowed PPG to pivot to sanitization coatings (e.g., antimicrobial paints for hospitals), which saw a 30% sales surge in 2021.
Result: Margins recovered to pre-COVID levels by 2022.

2017: Acquisition-Driven Cuts

After acquiring Tikkurila in 2016, PPG cut 1,200 roles (2.4% of workforce) to eliminate overlaps. The outcome:

Faster integration of Tikkurila’s European market share.
Boosted PPG’s global revenue by 15% within 2 years.

Analyst Insight: “Past layoffs show PPG can execute cost-cutting while maintaining growth. The key is aligning cuts with long-term strategic goals—this time, sustainability and emerging markets,” said Laura Chen, a coatings industry analyst at Gartner.

Analyst Predictions: What’s Next for PPG?

Financial experts are watching closely to see if the PPG Paints layoffs will pay off. Here’s what they’re forecasting:

Short-Term (2024–2025)

Cost savings: By 2025, PPG expects to save $100 million annually, which should offset rising raw material costs.
Margin recovery: Analysts at UBS predict PPG’s gross margin will hit 40% by Q1 2025, up from 38% in 2023.
Stock performance: Morgan Stanley maintains a “buy” rating, with a target price of $125 per share (up from $110 pre-announcement).

Long-Term (2026–2030)

Sustainability leadership: PPG’s focus on eco-friendly coatings could capture 15% of the global low-VOC market by 2030 (up from 8% in 2023), according to MarketsandMarkets.
Aerospace growth: The new aircraft coatings facility could generate $200 million in annual revenue by 2028, as defense spending rises globally.
Risk: If demand for architectural paints rebounds faster than expected, PPG may face production shortages. Analysts at Credit Suisse caution, “The company must retain flexibility to scale back up if needed.”

How Employees Can Leverage Their PPG Experience Moving Forward

For laid-off workers, PPG’s legacy of innovation and global operations can be a powerful asset. Here’s how to highlight their experience:

Transferable Skills

PPG employees often gain skills in:

Manufacturing expertise: Process optimization, quality control, and safety compliance (highly sought after in chemical and automotive sectors).
Technical knowledge: Coatings formulation, paint chemistry, and sustainability practices (rare skills in a niche industry).
Global experience: Many roles involve cross-border collaboration, which is valuable for multinational companies.

Target Industries

Laid-off PPG workers are well-positioned for roles in:

Chemical manufacturing: Companies like Dow or BASF often hire experienced production and R&D staff.
Automotive supply chains: Firms like 3M (which supplies automotive coatings) value PPG’s technical background.
Construction materials: Competitors like Sherwin-Williams or coatings distributors may seek sales and logistics experts.

Career Coach Advice: “Emphasize your PPG experience as a ‘stamp of quality,’ especially in technical roles. Many employers recognize PPG’s reputation for excellence,” said Emily Rodriguez of CareerForward, a partner firm with LHH.

Final Thoughts

The PPG Paints layoffs are a stark reminder of how economic shifts and strategic choices intersect in big business. While challenging for employees and communities, they represent a calculated move to position PPG for future growth in high-margin, sustainable segments.

As we move forward, the success of these cuts will depend on two factors:

Execution: Will PPG effectively reallocate savings to innovation and emerging markets?
Recovery: Can the company retain customer trust and avoid production bottlenecks?

For now, affected employees have resources to navigate transition, and customers can expect their favorite PPG products to remain available—though with a focus on greener options. Stay tuned to industry updates to track PPG’s journey.

Conclusion

The PPG Paints layoffs are a complex event, driven by economic headwinds, strategic pivots, and industry shifts. While difficult for those impacted, they signal PPG’s commitment to staying competitive. The success of these cuts will depend on how well the company executes its plan—prioritizing sustainability, aerospace, and emerging markets.

For employees, PPG’s support (severance, outplacement) offers a path forward, though retraining and job searches will require effort. For the industry, PPG’s moves highlight the need for agility in the face of change. As we look ahead, one thing is clear: These layoffs are more than just a short-term adjustment—they’re a turning point for PPG and the coatings world.