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Pilkington: reorganisation news imminent

16 October 1997: The UK glass group Pilkington is expected to announce plans to cut 4,000 jobs when it announces its interim results at the end of October.
One analyst has estimated that Pilkington“…

16 October 1997: The UK glass group Pilkington is expected to announce plans to cut 4,000 jobs when it announces its interim results at the end of October. One analyst has estimated that Pilkington“s labour costs are UK120 million higher than its French rivals Saint-Gobain and Glaverbel of Belgium. Glass industry costs are estimated to be falling by 1-2% a year because of pressure from car manufacturers for cheaper windscreens and investments in more efficient machinery. However, Pilkington“s labour costs represent 33% of sales, compared with 29% at its two major competitors. Pilkington“s chief executive Paolo Scaroni, appointed in May, has clearly indicated he is going to cut costs. The group has 7,900 workers in Britain with 39,000 worldwide.

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