Evonik to cut 1,000 jobs globally by 2020
The target, Essen, Germany-based Evonik said, is to reduce costs by 200 million euros by the end of 2020, with about two-thirds of the cost savings coming from administration and a third coming from sales functions.
June 29, 2018 by Canadian Plastics
In what it calls an attempt to “reduce bureaucracy, streamline processes, and cut administrative and selling expenses,” German specialty chemical maker Evonik AG has announced plans to cut up to 1,000 jobs globally by 2020.
The target, Essen, Germany-based Evonik said in a June 27 statement, is to reduce costs by 200 million euros (US$231 million) by the end of 2020. About two-thirds of the cost savings will come from administration and a third will come from sales functions.
“Our goal is to build a best-in-class specialty chemicals company,” Christian Kullmann, chairman of Evonik’s Board of Management, said in the statement. “To get there we need three things: a balanced portfolio, leading innovative capability, and a new, performance-oriented corporate culture. To this end, we are now making a big step forward on the cost side. We want to accelerate decision-making and strengthen cost-awareness.”
The company said the jobs to be eliminated will be in administration and sales positions and will help it towards achieving a “performance-oriented” corporate culture and a “healthy cost structure.”
“The first 50 million euros of these permanent savings will be achieved this year and will mainly comprise material costs,” the statement added. “To realize the remaining 150 million euros, a detailed analysis of all administrative support functions was carried out in recent months. Management and employee representatives have agreed to implement the process in a socially acceptable manner. The agreement that rules out business-related dismissals for employees in Germany has been extended until mid-2023. [We] will also be using natural fluctuation to reduce the number of jobs in administration and sales worldwide. Vacant positions will be examined to see whether it is necessary to fill them.”