Evonik wants to cut 1000 jobs
Author: Dimitri Lagun
Jobs should be ceased by 2020
The chemical company Evonik, based in Essen, would like to cut around 1000 jobs in administration and sales.
The company said in a board meeting that jobs should be cut by the end of 2020. In autumn 2017, Evonik CEO Christian Kullmann launched the savings pact which includes job cuts. It also states that administrative costs (two-thirds of savings) and distribution (one-third of savings) will be permanently reduced worldwide by 200 million euros per year.
Around 36,500 employees are employed by the BVB sponsor worldwide. Alone in Germany, with the locations Essen (headquarters) and Marl (production), are more than 20,000 people employed by the Group. In recent weeks, the sales and administration of Evonik have been considered more closely. Consultants compared the departments with other chemical companies.
The job cut should be “socially acceptable” as it was called after a meeting of the Supervisory Board between the Executive Committee and employee representatives. The disclaimer agreed for Germany for redundancies, which was actually intended only until the end of 2021, should continue to run until mid-2023.
In addition, the sales plans for a large area of the company are in the focus of the Evonik CEO. For example, work on the methacrylate business (Plexiglas), based in Darmstadt, Weiterstadt, Wesseling and Marl were put off. For the employees, this means that around 3,700 employees could leave the company soon.
Kullmann comments: “We have set ourselves the goal of becoming the best specialty chemicals company in the world. Above all, this includes three things: a well-balanced portfolio, leading innovation and a new, performance-oriented corporate culture. At the same time, we are taking a big step forward in terms of costs.” According to Kullmann, Evonik wants to “accelerate decision-making processes” and “strengthen cost awareness”.