Lafarge and Holcim reorganise group functions

Lafarge and Holcim reorganise group functions
Published: 20 May 2015

Lafarge and Holcim are each preparing the reorganisation of group functions in the context of their proposed merger.

Holcim’s proposed new organisation would result in a net reduction of approximately 120 jobs in Holcim Group functions in Switzerland. The social consultation process to reduce the impact on roles that are affected by reductions will now be launched with the employee representatives (AV) in Switzerland, the company said in a statement today.

Concerning Lafarge at worldwide level (ie, in sites located in Atlanta, Beijing, Cairo, Kuala Lumpur, Lyon, Montreal, Paris and Vienna), the proposed new organisation of central functions would result in approximately 380 net job losses  (ie, sites located in Atlanta, Beijing, Cairo, Kuala Lumpur, Lyon, Montreal, Paris and Vienna), with 166 of these in France (Paris and Lyon).

"The social support measures that will be negotiated with employee representatives will mostly consist of solutions based on internal mobility, early retirement and (in France) voluntary departures," Lafarge said.  The proposed merger will not affect employment in Lafarge’s operational functions in France, which employ more than 4500 people.

Lafarge noted that the organisation of the new group would be balanced between a decentralised structure and strong central functions based on three organisational levels:
• countries
• regions (Europe, North America, Middle East & Africa, Latin America, Asia-Pacific)
• corporate functions, which will help define the group’s key strategies.
There would be an equivalent number of personnel in the central functions in France and Switzerland. Moreover, the new group’s R&D centre would be located in L’Isle d’Abeau (near Lyon), France.

The merger project is expected to close in July 2015, subject to the acceptance of Holcim’s public exchange offer by the shareholders of Lafarge. The implementation of the new organisation is expected for early 2016 after completion of all relevant social consultations in Switzerland and France.