Sector News

Evonik to cut 1,000 jobs in cost-reduction program

June 28, 2018
Chemical Value Chain

Evonik Industries says it will cut 1,000 jobs, almost 3% of its workforce, by the end of 2020 as part of a previously announced cost-cutting program. The initiative targets annualized cost savings of €200 million by the end of 2020. The company says that management and employee representatives have agreed on the key points of the program.

The jobs to be lost will be in administrative and sales functions. About two-thirds of the cost savings will come from administration and one-third will be from sales, Evonik says. The first €50 million of the savings will be achieved this year and will mainly comprise material costs. A detailed analysis of all administrative and support functions was carried out in recent months to realize the remaining €150 million of cuts, Evonik says.

Evonik says that an existing agreement that rules out business-related dismissals for employees in Germany has been extended until mid-2023.

Evonik chairman Christian Kullmann says Evonik is targeting a balanced portfolio, leading innovative capability, and a new, performance-oriented culture. “To this end, we are now making a big step forward on the cost side,” Kullmann says. “We want to accelerate decision-making and strengthen cost-awareness.”

By Ian Young

Source: Chemical Week

comments closed

Related News

May 15, 2022

New York’s EPR and packaging reduction bills lauded as game-changers in plastic pollution battle

Chemical Value Chain

The US State of New York is introducing two new bills to combat over-packaging, poor recycling rates and litter issues, including an Extended Producer Responsibility (EPR) program requiring companies such as McDonald’s and Amazon to pay for the cost of packaging disposal and recycling.

May 15, 2022

Borealis and Reclay launch entity focused on lightweight packaging 

Chemical Value Chain

The new organization’s mission is to redesign the critical steps of the plastics sorting and recycling system for post-consumer lightweight packaging (LWP) to speed up circularity, born from a need to meet the rising market demand for high-quality recyclates for use in high-end plastic applications.

May 15, 2022

Starbucks and Hubbub launch reusable packaging fund as COVID-19 diminishes consumer appetite

Chemical Value Chain

Starbucks and Hubbub have launched a £1 million (US$1.22 million) “Bring It Back Fund” to increase the uptake of reusable packaging in the F&B industry. The funding will go toward innovative ideas that make it easier for customers to use alternatives to single-use packaging by supporting pilot projects that help shift consumption habits.