Johnson Matthey, a British autocatalyst maker, has announced that it will cut about 600 jobs in support functions, as it outsources some business processes to sharpen focus on its energy transition units. The company, which makes catalytic converters and other pollution filters for cars, wants to become a global energy transition company, and said that the job cuts are part of its cost-cutting and transformation programme.
The company had previously announced the closure of four manufacturing sites outside of the UK, which would also result in the reduction of 900 roles. The company said that it also needed to streamline its management by 25-30% to ensure the organisation was not top-heavy.
The company had started a cost-cutting programme in 2022 to save 150 million pounds ($186.92 million) in expenses per year by 2024-25. The company had fallen off the FTSE 100, the UK’s top stock market, earlier this year, and instead joined the FTSE 250, after its share price plunged.
The company’s chief executive officer, Liam Condon, said that the company was executing on its transformation at pace to simplify the business and drive improved performance. He said that the company was confident in its strategy and its ability to deliver long-term value for its stakeholders.
The company had reported lower fiscal half-year profit and revenue, but had raised its annual performance outlook, as it expected a better second half of the year. The company had seen strong demand for its battery materials, which are used in electric vehicles, and had invested in new plants in Poland and Finland to expand its production capacity.
The company had also sold its health business to U.S. private equity firm Advent International for 2 billion pounds in October, and said that it planned to use the proceeds to invest in its growth areas and return some cash to shareholders.
The company, which was founded in 1817 as a gold assayer, now employs about 13,000 people in over 30 countries. The company’s main products are catalytic converters, which reduce harmful emissions from vehicles, and it also produces chemicals, precious metals, and pharmaceutical ingredients.
The company had faced challenges from the decline in demand for diesel vehicles, the impact of the COVID-19 pandemic, and the shift to electric vehicles, which require less or no catalytic converters. The company said that it was well positioned to capture the opportunities from the energy transition, and that it was committed to achieving net-zero emissions by 2040.
