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European Edition
31st January 2025
 
THE HOT STORY
Akzo Nobel lifts job cutting target
Akzo Nobel has announced plans to cut approximately 2,200 jobs and close at least five sites by 2025 as part of its restructuring strategy. The paint and coatings company, which employed around 34,600 people at the end of December, aims to achieve over €150m in annualised gross savings by the end of this year, according to CEO Greg Poux-Guillaume. The job cuts will primarily affect functional roles in finance and HR, with final decisions expected by mid-year. The Dulux paint maker last year announced plant closures in Ireland, the Netherlands and Zambia, and in January, it said it would lay off up to 211 people in France. "We don't want to create the impression that restructuring is a recurring item for Akzo Nobel," Poux-Guillaume said. "Whatever the number ends up being . . .  it will be something that we will finalise this year and then we'll move on."
LEGAL
Google employees launch petition for ‘job security’
CNBC reports that Google employees have launched a petition for “job security” as they prepare for more expected layoffs. The petition urges Google CEO Sundar Pichai to offer buyouts before conducting layoffs and to guarantee severance to employees that do get laid off. The petition has been signed by more than 1,250 employees. CNBC says it is the latest indication of employee upheaval at the company, which has struggled to maintain high morale among its workforce following "embarrassing product rollouts, worker protests sparked by controversial enterprise contracts, and continued rounds of layoffs that stretch back to 2023 and are expected to continue." 
STRATEGY
Deutsche Bank to cut management roles as costs rise
Deutsche Bank has reported a significant decline in its fourth quarter and full-year profits for 2024, primarily due to legal provisions and restructuring costs impacting revenue in its global investment banking division. The bank's net profit fell to €106m, a decrease from €1.26bn a year prior, and below analyst expectations of around €380m. For the full year, profits dropped to €2.70bn from €4.21bn in 2023, also missing forecasts of nearly €3bn. Christian Sewing, Deutsche Bank’s chief executive, said the bank was considering cutting entire layers of management to help repair profits. He said: “Our clear ambition is to operate the bank with a lower headcount . . . We plan to actively reduce management layers and roles.”
Tele2 to axe 600 jobs in 2025
Tele2, the Swedish telecoms group, has announced plans to reduce its workforce by more than 600 in 2025 as it seeks to reduce costs and boost profitability. "Tele2 has initiated a transformation that aims to improve profitability through stricter prioritisation, reinforced cost consciousness and a simplified organisation," the company said, adding that the planned cuts include a workforce reduction of "around 15%", subject to labour union negotiations. "This will be a challenging time for all our colleagues, especially those directly affected by the reorganisation," Tele2 CEO Jean Marc Harion said, adding "These changes are however necessary to make Tele2 a faster and more agile company, better equipped to swiftly capture market opportunities."  Tele2 had 4,438 employees at the end of 2023, according to the most recent overview on its website.
WORKFORCE
Number of young adults in UK identifying as LGB doubles in five years
Data from the Office for National Statistics' Annual Population Survey reveals that the number of young adults in the UK aged 16-24 who identify as lesbian, gay or bisexual (LGB) has more than doubled in the last five years - from 4.4% in 2018 to just over 10% in 2023. Across the wider population, 3.8%, or 2.1m people, identified as LGB in 2023, up from 2.2% (1.2m) in 2018. With only around 1% of over-65s identifying as LGB, the ONS said the increase over time could be "attributed to more people being more open to identifying their own sexual orientation as being LGB." Stonewall chief executive Simon Blake said the figures should be "a wake-up call to organisations and governments who are rolling back on their commitments to LGBTQ+ rights and inclusion."
Dutch population is still growing, but more slowly
In 2024, the Dutch population reached 18.05m, growing by 103,000, a decrease from the previous year. The growth is attributed solely to migration, because natural growth remains negative, with more deaths than births. Statistics Netherlands reported that 314,000 people immigrated, while 205,000 emigrated. Population growth was observed in 285 out of 342 municipalities, particularly in Noord-Brabant and Flevoland, while areas like Zuid-Limburg and the North Sea coast experienced declines. “The aging population was the main cause of the decline in many municipalities,” CBS reported.
CORPORATE GOVERNANCE
Global CEO exits hit record high
In 2024, a record 202 CEOs departed from their positions, according to Russell Reynolds Associates, marking a 13% increase from the previous year and surpassing the six-year average of 186. The technology sector was particularly affected, with 40 CEOs leaving. Activist investors played a significant role, ousting 27 CEOs, nearly three times the number in 2020. Additionally, almost a quarter of the departures were due to planned succession processes, indicating a shift towards grooming internal talent. Margot McShane, co-lead of Russell Reynolds' global board and CEO practice, said: "It is only getting harder to be a CEO, where you're navigating uncharted territory." 
ECONOMY
ECB cuts rates amid economic stagnation
The European Central Bank (ECB) has implemented its fifth consecutive interest rate cut, reducing the key borrowing rate by 25 basis points to 2.75%, amid signs of economic stagnation in the eurozone. Bert Colijn, chief economist at ING, said: "After the energy and inflation shock, we returned to growth at the start of last year, but 2024 ended back in stagnation mode." The eurozone's GDP growth was flat in the last quarter of 2024, with Germany's economy contracting by 0.2%. While Spain and Portugal showed strong growth, Italy and France faced stagnation. The ECB is expected to continue rate cuts in 2025 if inflation remains controlled.
INTERNATIONAL
DEI has made air travel less safe, Trump says
President Trump has suggested that diversity initiatives from previous administrations contributed to the tragic collision between a passenger jet and a US army helicopter which resulted in 67 fatalities. The incident, the deadliest air disaster in the US in over two decades, saw the aircraft collide mid-air before crashing into the Potomac River. Trump said: "The [Federal Aviation Administration] is actively recruiting workers who suffer severe intellectual disabilities, psychiatric problems and other mental and physical conditions under a diversity and inclusion hiring initiative spelled out on the agency's website.” He added that the program allowed for the hiring of people with hearing and vision issues as well as paralysis, epilepsy and “dwarfism.” An initial report from the FAA reveals that staffing shortages on the night of the crash forced one air traffic controller to do two people’s jobs.
Bangladesh train services back on track
Train services in Bangladesh resumed on Wednesday following the end of an indefinite strike by railway workers that had halted the country's rail network. The strike, which began on Tuesday, disrupted around 400 passenger trains and over 30 freight trains, leaving thousands of commuters stranded. Union leader Mujibur Rahman said: “We have been assured by the government that the benefits we received earlier will remain in place.” The workers were protesting about a government decision that removed pension benefits for extra hours worked, raising concerns about their financial security post-retirement.
McDonald’s Hong Kong says worker was sacked for sharing sensitive information online
McDonald’s Hong Kong has rebuffed claims made by Luke Ching Chin-wai, a 53-year-old Hong Kong artist known for advocating labour rights, who said he was sacked for violating the fast food chain’s social media rules after he called for employees to be paid for their meal times. The chain said a part-time worker, which it did not identify, had repeatedly violated its policies by sharing internal operational and commercial information on public platforms.
OTHER
Greenlanders reject US ownership
An opinion poll reveals that 85% of Greenlanders oppose the idea of their island becoming part of the United States, according to Danish daily Berlingske. Only 6% support the notion, while 9% remain undecided. This survey follows US President Donald Trump's assertion that Greenland is vital for US security. Greenland Prime Minister Mute Egede emphasized that the island is "not for sale" and that its future should be determined by its people. Greenland, which has a population of 57,000 and gained self-governing autonomy in 2009, is strategically important due to its location for US military operations. Denmark is also increasing its military presence in the Arctic, committing 14.6bn crowns ($2.04bn) for this purpose.
 


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