Evonik says it will cut up to 1,000 jobs in administration and sales by the end of 2020. About two-thirds of the cost savings will come from administration and a third will come from sales functions, according to the company.
In fall 2017, Evonik reportedly set the target of permanently reducing administrative and selling expenses by €200 million worldwide by the end of 2020. The first €50 million of the permanent savings will be achieved this year and will mainly comprise material costs, according to the company. The company says it carried out a detailed analysis of all administrative support functions in recent months to realize the remaining €150 million.
Management and employee representatives have reportedly agreed on key points. The agreement that rules out business-related dismissals for employees in Germany has been extended until mid-2023. Evonik will also be using natural fluctuation to reduce the number of jobs in administration and sales worldwide. Vacant positions will be examined to see whether it is necessary to fill them, according to the company.
“Within the bounds of a policy document we will agree on important and proven social-plan instruments as well as starting with new, innovative ones,” says Martin Albers, chairman of the General Works Council. “At the same time, within this framework, we have managed to achieve the greatest possible job security for our colleagues with the ruling out of business-related dismissals for a period of five years. In doing so, the executive board, the employee representatives and the IG BCE union have demonstrated that trustworthy cooperation and a collaborative set-up can lead to success, even for difficult processes.”
For more information, visit: www.evonik.com