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Evonik to axe close to 2,000 jobs in restructuring

By Nithya Bose in Business News, posted March 4, 2024

Evonik Industries has confirmed around 2,000 job losses 2026 due to a poor financial situation.

The German chemicals company plans to streamline operations and cut costs amid a stagnant market outlook, not anticipating an economic turnaround within the year.

Evonik aims to achieve annual cost savings of approximately 400 million euros ($433.6 million) by the end of 2026.

The restructuring plan disproportionately affects management positions, particularly in Germany.

Evonik's decision underscores a growing trend among European chemical firms to tighten their belts in the face of persistent challenges.

It includes a weak demand and historically high energy costs, which prompted several industry players to issue profit warnings last year.

Other companies have echoed the sector's cost-cutting measures.

BASF announced a billion-euro cost reduction at its Ludwigshafen site.

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Similarly, Celanese plans to shut down a facility in Belgium, and Covestro focuses on cost efficiency and high-margin products.

Evonik's CEO, Christian Kullmann, said: “The many crises around the world have put a damper on our results.”

Evonik announced the sale of its superabsorbents business to the International Chemical Investors Group, marking a significant step in divesting its performance-materials division.

This deal includes five production sites in Germany and the US, with the transaction expected to close by mid-2024.

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