Evonik Efficiency Program: Restructuring and Cost-Cutting Measures
Evonik is driving its own transformation forward and will implement further restructuring and cost-cutting measures in the coming years. These measures include cutting approximately 3,200 jobs worldwide and discontinuing the polyester business.
The measures agreed upon by Evonik’s Executive Board and social partners apply to all business and administrative units worldwide. A total of 3,200 positions are to be eliminated between 2027 and the end of 2029, 2,150 of them in Germany. Evonik sees significant potential for this through increased efficiency, digitalization, and outsourcing. Options for offshoring are also being examined. As part of the ongoing Group program “Evonik Tailor Made” and the business lines’ efficiency programs, Evonik will already cut approximately 2,800 jobs from October 2023 through the end of 2026. “The global political situation is uncertain, and economic growth remains weak. At the same time, international competition is becoming increasingly fierce,” says CEO Christian Kullmann. “In this environment, we must become stronger. We hold our destiny in our own hands and intend to seize our opportunities.” Thomas Wessel, Chief Human Resources Officer and Director of Labor Relations, adds: “Job cuts will continue to be implemented in a socially responsible manner. The details will be worked out with the labor partners in the coming weeks.”
Evonik to Discontinue Polyester Business
In the Custom Solutions segment, Evonik will discontinue its global polyester business in 2027. This affects the German sites in Witten and Marl, as well as Shanghai, China. “Ending the polyester business and shutting down production is a step for which there is no economic alternative,” says Lauren Kjeldsen, the Executive Board member responsible for the segment. “Global competitive pressure, structural disadvantages in Europe, and declining market momentum have meant that none of the alternatives examined would have been economically viable for Evonik in the long term.” The polyester business generates annual sales of approximately €150 million and has not been profitable for years. The Witten site, which employs 266 people, will close in 2027. At the Marl site, 45 jobs will be eliminated, and 35 jobs will be cut at the production facility in Shanghai, China.
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