Evonik extends cost-saving program with 3,200 job cuts
Key takeaways
- Evonik will cut 3,200 jobs globally between 2027 and 2029.
- The cuts are part of a cost-saving program, which the company says will improve its efficiency and competitiveness.
- Beauty and chemical companies are under pressure from tariffs, supply issues, and rising costs.
Evonik has announced that it will cut 3,200 jobs globally between 2027 and 2029, as the German specialty chemicals company expands its cost-saving program that was initially set to conclude next year.
The new labor reductions come on top of approximately 2,800 positions that the company already announced will be axed from October 2023 through the end of 2026. The chemicals manufacturer says the job cuts will be made in a “socially acceptable manner.”
The moves are part of the company’s ongoing “Tailor Made” transformation. Evonik states that the measures are necessary to streamline its business operations and improve the company’s competitive position.
“The global political situation remains uncertain, and economic growth is persistently weak. At the same time, international competition is becoming increasingly fierce,” says Christian Kullmann, CEO at Evonik.
“We must become stronger in this environment. Our fate is in our own hands, and we are determined to seize our opportunities.”
In the latest announced round of job cuts, 2,150 roles will be in Germany, the company’s home market.
“Evonik sees considerable potential for this through increased efficiency, digitalization, and outsourcing. In addition, options for offshoring are being examined,” reads a company statement.
Cosmetic cut-backs
Many personal care players have had to adapt their operational strategies in the face of geopolitical tension as of late — from tariffs squeezing pricing and margins, to supply shortages prompting sourcing changes.
Last week, Personal Care Insights reported that EU lawmakers locked in 15% tariffs on European beauty exports to the US. French cosmetic players warned that the duties have contributed to nearly €800 million (US$928 million) in lost exports, and are urging a beeline back to 0%.
Moreover, in the face of the US–Iran war, some ingredient players, including BASF and Ashland, have turned to raising their prices due to disrupted supply chains. In May, BASF said it would increase its prices by 30% across several European product categories, while Ashland announced applying flexible pricing strategies across its Personal Care and Specialty Additives divisions.
