Lafarge presented to employee representatives the proposed organization of central functions in the context of the creation of LafargeHolcim.
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The organization of the new Group would be balanced between a decentralized structure and strong central functions based on three organizational levels:
countries, regions (Europe, North America, Middle East & Africa, Latin America, Asia-Pacific), and 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 center would be located in France, in L’Isle d’Abeau (near Lyon).
Concerning Lafarge at worldwide level (i.e., in sites located in Atlanta, Beijing, Cairo, Kuala Lumpur, Lyon, Montreal, Paris and Vienna), the proposed new organization of central functions would result in approximately 380 net job losses, 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. The proposed merger will not affect employment in Lafarge’s operational functions in France, which employ more than 4,500 people.
Holcim announces that it is preparing the reorganization of Group functions in the context of the proposed merger with Lafarge to create the most advanced company in the building materials industry. The objective is to create a lean organization with empowered countries, regional management platforms, and Group functions for the combined company.
Group functions are designed to increase the competitiveness of the Group at all levels – global, regional and local, to implement best practices and to support and enable LafargeHolcim to achieve the highest possible performance.
The proposed new organization would result in a net reduction of approximately 120 positions in Holcim Group functions in Switzerland. ■