Evonik Extends “Tailor Made” Efficiency Program

Evonik (Piscataway, N.J.) will implement further structural and cost-cutting measures over the coming years as part of an expansion of its "Tailor Made" transformation program.

"The global political situation remains uncertain, and economic growth is persistently weak. At the same time, international competition is becoming increasingly fierce," says CEO Christian Kullmann. "We must become stronger in this environment. Our fate is in our own hands, and we are determined to seize our opportunities."

The measures, agreed upon jointly by the executive board and employee representatives, will affect all of Evonik's business and administrative units worldwide. In total, 3,200 positions will be eliminated, including 2,150 in Germany, with the cuts phased in from 2027 through the end of 2029. Evonik sees significant potential for savings through increased efficiency, digitalization and outsourcing and is also examining options for offshoring certain functions. This builds on cuts already underway: since October 2023, the ongoing "Evonik Tailor Made" program and related efficiency initiatives in its operating businesses are set to eliminate around 2,800 positions by the end of 2026. Chief Human Resources Officer and Labor Director Thomas Wessel said the job cuts will continue to be carried out in a socially responsible way, with specifics to be finalized with social partners in the coming weeks.

As part of the plan, Evonik will exit its global polyester business in the Custom Solutions segment in 2027, affecting operations in Witten and Marl, Germany, and Shanghai, China. Executive board member Lauren Kjeldsen, who oversees the segment, described ending the polyester business as an economically unavoidable step, citing global competitive pressure, structural disadvantages in Europe and declining market dynamics that made none of the alternatives Evonik examined viable long-term. The polyester business generates roughly €150 million in annual revenue but has been unprofitable for years. As a result, the Witten site, which employs 266 people, will close entirely in 2027, while 45 jobs will be cut in Marl and 35 positions eliminated at the Shanghai production plant.