Axalta (Philadelphia,
Pennsylvania, USA) recently announced plans “to more closely align its global
organization with its two global business segments to drive improved
performance,” according to an online statement. This latest realignment follows
the restructuring plan announced this summer—together, the two initiatives are
part of Axalta’s ongoing program to increase organizational effectiveness and
enable growth.
For the last seven years, Axalta
has operated in a dynamic matrix organization consisting of regional
leadership, global commercial business leadership, and global functions where
regional leadership had primary financial responsibility. Axalta plans to
simplify the structure to further empower global business units with full
profit and loss (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,” says Robert W. Bryant,
Axalta's 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.”
Adds Bryant, “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.”
As a part of this organizational
realignment, Axalta will close its Center City Philadelphia offices. 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 with key technical staff.
“Bringing together our
corporate, business and technology teams will foster increased collaboration,
accelerate innovation and enhance operational efficiency,” Bryant says.
Axalta's regional headquarters
in Basel, Switzerland, and Shanghai, China, will continue to play important
roles in the day-to-day management of Axalta's 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.
The organizational realignment
will be effective January 1, 2021, and the Philadelphia office shifts will
occur in mid-2021.