Evonik Extends "Tailor Made" Efficiency Program Until 2029
Evonik has decided to extend its "Tailor Made" efficiency program, part of its transformation strategy, until 2029. Under the new plan, the company aims to restructure globally and reduce costs, targeting the socially acceptable reduction of approximately 3,200 positions and the exit from its polyester business.
Evonik has decided to extend its "Tailor Made" efficiency program, which it is running as part of its transformation strategy, until 2029. In line with the new plan, the company aims to reduce approximately 3,200 positions through socially acceptable methods and exit the polyester business while undertaking restructuring and cost-cutting measures on a global scale.
According to the company's statement, the decisions will cover all business units and administrative organization. Of the employment adjustments to be implemented during 2027-2029, approximately 2,150 will be carried out in Germany. Evonik plans to benefit from measures such as productivity increases, digitalization, outsourcing, and relocation of certain activities to different locations during this transformation process.
Polyester operations to cease in 2027
One of the significant steps of the restructuring program will be the termination of the company's global polyester operations. Evonik has decided to close the polyester business unit, which has been unprofitable for some time, in 2027.
Under this decision, production activities at Germany's Witten and Marl facilities and at the Shanghai plant in China will be affected. While the complete closure of the Witten facility is planned, employees working in the relevant production areas will also be affected by the restructuring process.
"Competitive conditions require us to be stronger"
Evonik Chief Executive Officer Christian Kullmann stated that the global economic outlook remains uncertain and international competition is intensifying, adding that the company has accelerated its transformation to adapt to these conditions.
Kullmann noted that they aim to create a leaner, faster, and more competitive organizational structure, and that the company intends to build future growth on a stronger financial foundation.
Efficiency program expanded
Under the ongoing "Tailor Made" program, Evonik plans to remove approximately 2,800 positions from the organization from the end of 2023 to the end of 2026. The newly announced program extends this transformation process until 2029, envisaging a more comprehensive structural transformation in the company's global operations.
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