Recently, Evonik Industries, a leading German chemical manufacturer, has announced its most extensive restructuring program to date, aimed at streamlining operations and addressing industry challenges. The initiative could lead to the reduction of up to 7,000 jobs—over 20% of its 32,000-strong workforce—as the company seeks to adapt to high production costs and weak demand that have plagued Germany’s chemical sector throughout 2023.
As part of the plan, Evonik may spin off its Marl and Wesseling site operations, which together employ 3,600 workers. These assets could be transitioned into joint ventures or sold entirely, according to CEO Christian Kullmann. This follows previously announced cost-saving measures, including the elimination of 2,000 jobs by 2026, targeting annual savings of €400 million ($437 million).
Evonik also unveiled a strategic overhaul of its business structure, consolidating its operations into two core segments: Custom Solutions and Advanced Technologies. The Custom Solutions segment will focus on additives for paints, coatings, cosmetics, and pharmaceuticals, while Advanced Technologies will emphasize high-performance polymers and hydrogen peroxide production.
To enhance efficiency, Evonik plans to reduce management layers from 10 to a maximum of six by the end of 2026. Despite the ongoing restructuring, the company anticipates increasing its operating profit this year.
