German chemicals maker Evonik aims to slim down its business by starting the biggest restructuring program in its history, the company said on Friday, potentially reducing its workforce by more than a fifth.
The group, based in Germany’s industrial heartland, could spin off activities at its Marl and Wesseling sites with a combined 3,600 employees, CEO Christian Kullmann said, adding these assets could be transferred into joint ventures or sold.
In total, and including sales program already underway, Evonik could eventually shed around 7,000 of its 32,000 jobs.
Germany’s chemical industry suffered heavily throughout 2023 due to high production costs and weak demand amid rising inflation. Initial signs of recovery early this year have faded away.
Evonik still expects to increase its operating profit this year.
The company, which makes chemicals used in products from animal feed to Pfizer and BioNTech’s COVID vaccine, had in March announced up to 2,000 job cuts by 2026 with the goal of reducing costs by 400 million euros ($437 million) annually.
Evonik on Friday also announced a restructuring of its business lines into two segments. It will focus on its core operating businesses Custom Solutions and Advanced Technologies.
The Custom Solutions segment includes additives for paints and coatings, as well as products for the cosmetics and pharmaceutical industries. Its Advanced Technologies segment focuses on high-performance polymers and hydrogen peroxide production.
Source: Reuters
