Evonik is set to push ahead with further structural reforms and cost-cutting measures over the approaching years as it hastens its corporate transformation in the face of escalating worldwide pressure.
“The worldwide political situation stays unsure, and economic growth is constantly weak. At the same time, international competition is becoming gradually fierce,” stated Chief Executive Officer Christian Kullmann. “We must become more stronger in this environment. Our fate is in our own hands, and we are committed to seize our opportunities.”
The measures, approved by the Executive Board and employee representatives, will effect all business and administrative units worldwide. In total, 3,200 jobs will be removed, which include 2,150 in Germany, with implementation scheduled from 2027 by the end of 2029.
The company stated that the reductions might be driven by means of efficiency gains, digitalization, outsourcing, and potential offshoring, as a part of its wider “Evonik Tailor Made” program. A further 2,800 positions are already planned for removal among October 2023 and the end of 2026 under continuing efficiency initiatives.
“The job cuts will stay socially appropriate moving forward,” stated Chief Human Resources Officer and Labor Director Thomas Wessel. “The details can be confirmed with the social partners in the coming weeks.”
At the same time, Evonik is making broader strategic move in its portfolio. In its Custom Solutions phase, the company will close down its worldwide polyester business in 2027, impacting sites in Witten and Marl in Germany, as well as Shanghai in China.
“Shutting down the polyester business and ultimately shutting manufacturing is an economically unavoidable step,” stated Lauren Kjeldsen, who’s accountable for the segment on the Executive Board.
“Global competitive pressure, structural disadvantages in Europe, and dropping market dynamics mean that none of the options examined would have been economically possible for Evonik in the long term.”
The polyester department, which forms around €150 million in annual revenue, has been loss-making for years. The closure will remove 266 jobs in Witten, in which the site will close down wholly in 2027, together with 45 positions in Marl and 35 roles in Shanghai.
