Evonik Expands Restructuring Program, Plans 3,200 Additional Job Cuts Through 2029
Germany-based Evonik announced an expansion of its ongoing "Tailor Made" efficiency program, introducing additional restructuring and cost-reduction measures that will eliminate approximately 3,200 jobs globally between 2027 and the end of 2029.
According to the company, about 2,150 of the affected positions are located in Germany. The reductions will impact business and administrative functions worldwide and are expected to be achieved through efficiency improvements, digitalization, outsourcing and potential offshoring initiatives.
"The global political situation remains uncertain, and economic growth is persistently weak. At the same time, international competition is becoming increasingly fierce," CEO Christian Kullmann said in a statement. "We must become stronger in this environment. Our fate is in our own hands, and we are determined to seize our opportunities."
The latest workforce reduction follows the company's ongoing Tailor Made program, under which Evonik plans to eliminate approximately 2,800 positions between October 2023 and the end of 2026.
Chief Human Resources Officer Thomas Wessel said the company intends to implement the reductions through socially responsible measures and will work with employee representatives to finalize details in the coming weeks.
Polyester Business to be Discontinued
As part of the restructuring, Evonik will discontinue its global polyester business in 2027. The move affects manufacturing operations in Witten and Marl, Germany, as well as Shanghai, China.
The polyester business generates annual revenue of approximately €150 million but has remained unprofitable for several years, according to the company.
"Ending the polyester business and closing production is an economically unavoidable step," said Lauren Kjeldsen, Evonik executive board member responsible for the Custom Solutions segment. "Global competitive pressure, structural disadvantages in Europe, and declining market dynamics mean that none of the alternatives examined would have been economically viable for Evonik in the long term."
The closure will affect 266 employees at the Witten site, which is scheduled to cease operations in 2027. An additional 45 positions will be eliminated in Marl and 35 jobs will be cut at the Shanghai production facility.
Balancing Growth Investments with Restructuring
The restructuring comes as Evonik continues to invest in strategic growth areas, particularly biotechnology, sustainability and innovation.
Earlier this year, the company announced a roughly €80 million ($93 million) investment to expand biotechnology-based pharmaceutical ingredient manufacturing at its Fermas site in Slovenská Ľupča, Slovakia. The project will add downstream fermentation capacity, create approximately 50 jobs and strengthen Evonik's contract manufacturing capabilities for biopharmaceutical ingredients.
More recently, Evonik unveiled a reorganization of its innovation activities, including the launch of its Innovation Factory initiative. The company expects the platform to contribute up to €300 million in additional revenue by 2032 through accelerated commercialization of technologies focused on bio-based solutions, the energy transition and the circular economy.
Evonik said approximately 48% of its current revenue comes from products classified as Next Generation Solutions, which offer sustainability benefits compared with conventional alternatives.