welt.de
Evonik Announces Major Restructuring Amidst German Chemical Industry Downturn
Evonik, a German chemical company, announced its largest-ever restructuring plan, impacting around 7000 jobs due to cost-cutting and the reorganization into two segments (Custom Solutions and Advanced Technologies), each with approximately €6 billion in annual revenue, effective April 1, 2025. Despite the German chemical industry's recession, Evonik projects increased profitability for 2024.
- What is the immediate impact of Evonik's restructuring on its workforce and operations?
- Evonik, a German chemical company, is undergoing its largest restructuring, impacting approximately 7000 jobs. This includes eliminating 2000 positions due to cost-cutting measures and the potential sale or spin-off of businesses employing 3600 individuals. The restructuring will consolidate operations into two segments: Custom Solutions and Advanced Technologies, each with approximately €6 billion in annual revenue.
- What are the potential long-term consequences of Evonik's restructuring for its market position, competitiveness, and employee morale?
- Evonik's transformation aims to enhance its competitiveness by streamlining operations and focusing on high-growth segments. The elimination of a complete management level signals a shift towards leaner structures. The success of this restructuring will depend on the successful integration of the two new segments and the ability to navigate the ongoing challenges in the German chemical industry, which may require further adjustments based on market response.
- How does Evonik's restructuring strategy compare to other companies in the German chemical industry, and what are the broader economic factors driving these changes?
- This restructuring reflects the broader challenges within Germany's struggling chemical industry, experiencing a recession with decreased demand. While Evonik's restructuring involves significant job losses, it projects a 20% increase in EBITDA for 2024 (to €1.9-2.2 billion from €1.6 billion in 2023), indicating a comparatively strong performance despite the industry downturn. The restructuring aims to improve Evonik's competitiveness and efficiency.
Cognitive Concepts
Framing Bias
The framing is largely neutral. While the article highlights the significant job cuts, it also presents the restructuring as a necessary step for Evonik's future competitiveness and profitability. The inclusion of the CEO's optimistic outlook balances the negative aspects of job losses. The headline (not provided, but assumed to reflect the article's content) likely plays a significant role; a headline emphasizing only job losses would create a negative framing.
Sustainable Development Goals
The restructuring of Evonik will lead to the loss of around 7000 jobs, negatively impacting employment and economic growth. The reduction is a response to the crisis in the German chemical industry, highlighting economic challenges and job insecurity within the sector.