ICI axes 1,400 jobs as profits fall again

UK paints and chemicals group ICI today announced 1,400 job cuts as it struggles to revive its fortunes.

Dulux Ireland has said it does not expect its 200 workers to be affected by the worldwide series of lay-offs announced by its parent company.

The cuts come on top of 700 job losses announced in May as the group launched a major restructuring programme after seeing first quarter profits slide.

ICI said that the economic outlook remains uncertain as second quarter results published today showed profits falling 22% to £98m (€139m).

While ICI hopes to reduce its headcount through natural wastage and voluntary redundancy packages, a spokeswoman said the group could not not rule out compulsory job losses.

The cuts, which will be phased in by the end of 2006, will fall across the group’s businesses as well as affecting head office functions.

The group, which employs 36,600 staff worldwide with around 5,000 in the UK, said that sales in the second quarter of 2003 were 5% lower than at the same point last year at £1.5bn (€2.1bn).

But both its National Starch and Quest food flavourings businesses, which dragged down the group’s first quarter profits, saw an improvement.