Evonik, the Essen-based chemical company, has announced a sweeping restructuring plan aimed at streamlining its operations and reducing costs amid challenging market conditions. CEO Christian Kullmann described the initiative as the most significant overhaul in the company’s history. The restructuring will consolidate Evonik’s four current segments into two main divisions: Custom Solutions and Advanced Technologies, each with an annual turnover of approximately €6 billion.
In March, Evonik had announced plans to cut 2,000 jobs, including 1,500 in Germany. However, the new strategy involves deeper cuts, with up to 7,000 positions out of the current 32,000 potentially being eliminated. This includes employees at the Marl and Wesseling sites, which employ around 3,600 workers. These units may be sold or integrated into joint ventures as part of the restructuring.
The restructuring also targets management layers, eliminating an entire operational management level to create a leaner organization. Significant changes in leadership include the departure of board members Harald Schwager and Johann-Caspar Gammelin. The new business segments will be led by American executive Lauren Kjeldsen and French executive Claudine Mollenkopf.
Evonik’s decision follows financial struggles amid a broader industry crisis. In 2023, the company’s revenue declined by 17%, shrinking to €15 billion, with net earnings dropping to €1.7 billion compared to €2.5 billion the previous year. The company produces a wide range of products, including amino acids for animal feed and lipids for vaccines, but has faced declining profitability.
The proposed job cuts and management overhaul signal a challenging transition for Evonik as it adapts to changing industry conditions. The restructuring plan will likely face scrutiny from employees, unions, and stakeholders as the company seeks to balance cost-cutting with long-term growth objectives.
