Evonik to cut 3,200 more jobs in global restructuring push

German chemicals group Evonik will eliminate a further 3,200 jobs worldwide between 2027 and 2029 as it expands its "Tailor Made" efficiency programme, according to the company. 

Around 2,150 of the affected positions are in Germany.

Tough market conditions

The company cited weak economic growth, geopolitical uncertainty and rising global competition as key reasons for the move.

"The global political situation remains uncertain, and economic growth is persistently weak. At the same time, international competition is becoming increasingly fierce," said Christian Kullmann, CEO, Evonik. 

 "We must become stronger in this environment. Our fate is in our own hands, and we are determined to seize our opportunities,” he added.

Evonik plans to improve efficiency through digitalisation, outsourcing and potential offshoring initiatives.

Further job cuts

The latest reductions follow plans to remove around 2,800 positions between October 2023 and the end of 2026 under existing efficiency programmes.

"The job cuts will remain socially acceptable moving forward," said Thomas Wessel, Chief Human Resources Officer and Labour Director, Evonik.

"The details will be finalized with the social partners in the coming weeks,” he also mentioned.

Polyester business exit

Evonik will also shut its global polyester business in 2027, affecting sites in Witten and Marl, Germany, and Shanghai, China.

The unit generates about €150 million in annual revenue but has remained unprofitable for years.

"Ending the polyester business and closing production is an economically unavoidable step," says Lauren Kjeldsen, for the segment on the Executive Board. 

She further said, "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."

The closure will impact 266 jobs in Witten, 45 in Marl and 35 in Shanghai.