The German specialty chemicals group Evonik plans to cut around 7,000 jobs as part of its restructuring, Bild newspaper reports.
According to its information, the group is introducing a new segment structure and adopting a much more compact management model. The company's business areas, which were previously grouped into four divisions, will now be managed directly by members of the Executive Board. “In our current structure, it is no longer enough to focus solely on the production of specialty chemicals“, said board chairman Christian Kuhlmann. “In the future, we will manage Evonik in a more differentiated way, leveraging our two core areas: a business focused on solutions and innovation on the one hand, and a business focused on technology and efficiency on the other”, he said.
Under the new structure, which will come into effect on April 1, 2025, the company will organize its business areas into two new segments: Custom Solutions and Advanced Technologies. The segments currently have annual sales of around 6 billion euros each. Kuhlman has also already initiated cost-saving programs that will result in the loss of around 2,000 jobs.
The companies, which employ around 3,600 people in Marl and Wesseling (North Rhine-Westphalia), will also be split up, possibly merged into joint ventures or sold. Overall, including ongoing divestment programs, Evonik could cut around 7,000 of its current 32,000 jobs, the newspaper said.
Evonik is one of the world's leading specialty chemicals companies. The company operates in more than 100 countries worldwide with sales of EUR 15.3 billion and an operating profit of EUR 1.66 billion in 2023. Evonik's products are used in industry, agriculture, the food industry, personal care and cleaning products.