Evonik Industries, a German chemical group, stated on Monday that it anticipates no economic recovery in 2024 and disclosed plans for up to 2,000 job reductions worldwide by 2026. These cuts are projected to yield annual cost savings of €400 million ($434.04 million), with the majority, approximately 1,500 positions, concentrated in Germany. Chemical firms have been facing challenges for over a year, compelled to trim inventories due to decreased demand from industrial customers amid surging energy prices.
Despite ongoing challenges, Evonik achieved its 2023 forecast, which had been revised downward during the summer. The specialty chemicals company reported an adjusted EBITDA of €1.66 billion, falling within the projected range of €1.6 billion to €1.8 billion. Group sales experienced a decline of 17% to €15.3 billion, also falling within the targeted range of €14 billion to €16 billion.
“The many crises around the world have put a damper on our results,” says Christian Kullmann, Chairman of the Executive Board. “Overall, we got away with a black eye. We owe this above all to the great efforts of all our employees. However, the general conditions will not get any easier, which is why we will continue our fundamental revamp of the Group.”
