German chemical and consumer goods giant Henkel is navigating choppy waters as it announces a second wave of workforce reductions in its restructuring journey. Carsten Knobel, the company’s CEO, emphasized the difficulties and the current inability to specify the scale of the forthcoming job cuts during a media call on Monday. The first phase of restructuring resulted in the elimination of 2,000 jobs worldwide, to achieve substantial annual savings by the conclusion of 2024.
Henkel’s restructuring initiative isn’t just about reducing costs; it’s a strategic shift aimed at boosting efficiency and competitiveness, especially in its consumer brands division. The first phase, which saw 2,000 job cuts globally (including 300 in Germany), aimed to achieve annual savings of €275 million, surpassing the initial target of €250 million. This decisive move was necessary to strengthen the company’s financial standing and strategic position in a fiercely competitive market.
In 2023, as part of the second phase, Henkel eliminated 800 positions. However, the exact number of job cuts in this phase remains uncertain, highlighting the ongoing assessment and strategic planning within the company. This phase prioritizes optimizing the supply chain, crucial for enhancing overall efficiency and cutting operational expenses.
Henkel’s financial report for the fiscal year 2023 reveals that the company achieved sales of €21.514 billion, representing a decrease of 3.9% compared to the previous year. Within this, the sales from the consumer brands division, which is the focus of the recent layoffs, totaled €10.565 billion, marking an organic growth of 6.1%.
