Evonik to Cut 3,200 Jobs Globally Amidst Chemical Industry Crisis

Evonik Industries, a major German chemical company headquartered in Essen, has announced plans to reduce its workforce by 3,200 jobs worldwide by 2029, with 2,150 of those cuts set to occur in Germany. The company attributes these reductions to a structural and economic crisis facing the chemical sector, marked by high energy costs and rising competition from lower-priced Asian producers.

Transition CEO Claus Rettig highlighted the shared recognition among the company's leadership and employee representatives of the industry's challenges. Evonik aims to carry out the layoffs without forced terminations until 2029, opting instead for voluntary departures via severance agreements, early retirements, and not filling vacancies. This approach is part of a broad restructuring plan that began in 2024, which also involves reorganizing product portfolios among six major German production sites.

In addition to job cuts, Evonik plans to discontinue its polyester business, which currently generates around 150 million euros annually. The company also intends to divest subsidiaries Oxeno and Syneqt, which together employ about 4,300 people, to free funds for investments, especially in growth regions like Asia and America.

Despite anticipated restructuring costs, Evonik's stock price rose nearly 5% following the announcement, reflecting investor confidence. The firm expects to have nearly 900 fewer employees by the end of 2025 compared to the previous year, bringing its workforce down to roughly 31,053. While confronting tough industry conditions, Evonik remains optimistic about its future prospects, describing the upcoming year as potentially "good," aided by decreased competition due to supply chain disruptions affecting some Asian rivals.