Axlata Coating Systems Ltd. plans to close its Center City global headquarters office and move out of the 36,000 square feet it has occupied at Two Commerce Square for the last seven years.
Employees working out of Philadelphia will relocate to either its 55,000-square-foot North American headquarters off Applied Bank Way in Glen Mills or its 175,000-square-foot research facility at the Philadelphia Navy Yard.
The decision to close its Center City office comes after the company went through a restructuring over the summer that led it to realign its real estate and other operations. The restructuring will result in 550 job cuts over the next two years as part of plan to generate $50 million in savings amid economic pressures.
The move out of Center City veers from Axalta’s (NYSE: AXTA) original plans when it spun out of DuPont Inc. in 2013 and moved out of Delaware and deliberately split its global and North American headquarters into two locations.
The company said at the time it wanted to have a distinct location for its global and North American headquarters.The company then decided to place its global headquarters in Commerce Square, saying at the time it preferred an urban setting near mass transit as well as the Philadelphia International Airport. The company then moved its North American headquarters to Glen Mills, contending it was closer to where most employees, who had previously worked at DuPont, live and from where they had been commuting for years.
In that time, the company, which makes coatings that go into paint used on vehicles and other products, went from being privately owned to publicly traded.
Axalta announced in late March that it ended a review of strategic alternatives it began in 2019 to explore a potential sale of the company, saying the impact of the coronavirus on markets was to blame.
Philadelphia office shifts will be completed in mid-2021.
*Article Courtesy of Philadelphia Business Journal
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