Evonik is expanding its structural and cost-cutting measures to promote its transformation. The newly expanded efficiency program, known as Evonik Tailor Made, will see 3,200 jobs eliminated (including 2,150 positions in Germany). This measure will run from 2027 until the end of 2029. Additionally, the company is looking to make improvements in efficiency, digitalisation, and outsourcing, with offshoring options also being examined.
Evonik
Evonik extends Tailor Made efficiency program
“The global political situation remains uncertain, and economic growth is persistently weak. At the same time, international competition is becoming increasingly fierce,” said Christian Kull, Chief Executive Officer of Evonik. “We must become stronger in this environment. Our fate is in our own hands, and we are determined to seize our opportunities.”
Thomas Wessel, Chief Human Resources Officer and Labour Director of Evonik, added, “The job cuts will remain socially acceptable moving forward. The details will be finalised with the social partners in the coming weeks.”
Polyester business closure
Evonik is also set to discontinue its global polyester business in 2027. This will impact sites in Witten and Marl, Germany, as well as Shanghai, China. The polyester business generates annual revenues of around 150 million euros but hasn’t been profitable for years. As a result of the closure, the following job reductions will take place:
- The Witten site, which employs 266 people, will be closed next year.
- 45 jobs will be cut in Marl.
- 35 positions will be cut in Shanghai, China.
“Ending the polyester business and closing production is an economically unavoidable step,” said Lauren Kjeldsen, who is responsible for the segment on the Executive Board. “Global competitive pressure, structural disadvantages in Europe, and declining market dynamics mean that none of the alternatives examined would have been economically viable for Evonik in the long term.”
