Lafarge launches reorganization project of Group functions in preparation of merger with Holcim - 380 net job losses worldwide, including 166 in France

On May 19, Lafarge presented to employee representatives the proposed organization of central functions in the context of the creation of LafargeHolcim, which will be the world’s most advanced Group in the building materials industry and will employ approximately 115,000 people.

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.

This procedure is a key phase in the preparation of the creation of the new LafargeHolcim Group. The completion of the proposed merger is expected to occur in July 2015. Before this can happen, the public exchange offer will have to be successful, with shareholders tendering at least two-thirds of Lafarge shares.

NOTES TO EDITORS

A world leader in building materials, Lafarge employs 63,000 people in 61 countries, and posted sales of €12.8 billion in 2014. As a top-ranking player in its Cement, Aggregates and Concrete businesses, it contributes to the construction of cities around the world, through its innovative solutions providing them with more housing and making them more compact, more durable, more beautiful, and better connected. With the world’s leading building materials research facility, Lafarge places innovation at the heart of its priorities in order to contribute to more sustainable construction and to better serve architectural creativity. 

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