Evonik Industries has unveiled a further round of restructuring that will remove 3,200 positions around the world by the end of 2029 and shutter its polyester operations as part of broader cost-saving measures. The German specialty chemicals company said the package, agreed by the executive board and employee representatives, is intended to address weak economic conditions and intensifying international competition.
Shares of the company fell about 2% after the announcement.
Scope and timeline
The planned workforce reductions will be implemented across business and administrative units globally. Of the 3,200 roles set to be eliminated, 2,150 are in Germany. Evonik said the cuts are scheduled to run from 2027 through the end of 2029.
Evonik framed the measures as a response to market realities. "The global political situation remains uncertain, and economic growth is persistently weak. At the same time, international competition is becoming increasingly fierce," chief executive Christian Kullmann said in a company statement.
Polyester business exit and site impacts
As part of the restructuring, Evonik plans to discontinue its global polyester business in 2027. The move will affect production sites in Witten and Marl in Germany and at a plant in Shanghai, China. The company described ending the polyester business and closing production as "an economically unavoidable step," a comment attributed to Lauren Kjeldsen, the executive board member responsible for that segment.
Evonik said the polyester business produces around c150 million in annual revenue but "has not been profitable for years." The planned closure of the Witten site in 2027 will impact 266 employees. In Marl, 45 roles will be eliminated, while the Shanghai plant will see 35 positions cut.
Cost-saving measures and prior programs
The company indicated it is pursuing additional avenues to reduce costs beyond headcount reductions and the polyester exit. Evonik said it sees potential for further savings via efficiency improvements, digitalization and outsourcing, and it is examining offshoring options as part of that review.
Management described the latest moves as building on the existing "Evonik Tailor Made" program and other efficiency initiatives in its operating businesses. Under those prior efforts, roughly 2,800 positions were planned to be cut between October 2023 and the end of 2026.
On the social implications of the decision, chief human resources officer Thomas Wessel said the job reductions "will remain socially acceptable moving forward."
Market and sector implications
The announcement affects manufacturing and materials sectors, with direct implications for Evonik's chemical production footprint in Germany and China. The companys emphasis on efficiency, digitalization and potential offshoring also points to operational shifts that could influence supplier and service arrangements linked to its production sites.