2024-03-04 18:01:12
Restructuring of administration: Evonik is cutting hundreds of jobs, most of them in Germany. Many jobs will be eliminated, especially at one level.
The chemical company Evonik is cutting many jobs as part of a large-scale administrative restructuring. “Up to 2,000 jobs will be eliminated worldwide, a disproportionate number of which will be management positions,” the company announced on Monday. In Germany, around 1,500 jobs are affected. The group employs a total of 33,000 people.
Evonik announced in September that it wanted to noticeably streamline administration based on a model that was being developed. “The first phase is now completed,” it said on Monday. The number of hierarchy levels below the board of directors will be reduced to a maximum of six. Testing and approval procedures should be significantly accelerated.
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The program is intended to reduce costs by around 400 million euros by 2026 and the group should become leaner and more efficient. The first effects will be felt as early as 2024. After a slump in sales and profits last year, Evonik expects only slight growth in 2024.
“The many crises around the world ruined our results”
“Evonik does not yet expect any real economic recovery in 2024,” the company said. The operating income (adjusted Ebitda) is expected to be in a range of 1.7 to 2 billion euros with sales of 15 to 17 billion euros. Investments in property would also be limited.
Last year, Evonik clearly lost ground in the industry crisis. The group, which produces products ranging from amino acids for animal fattening to lipids for vaccines, had an adjusted Ebitda of almost 1.7 (previous year: 2.5) billion euros with sales falling by 17 percent to 15 billion euros.
The shareholders of the Essen-based RAG-Stiftung are to receive an unchanged dividend of 1.17 euros per share despite the slump in profits. “The many crises worldwide have ruined our results,” said CEO Christian Kullmann. Overall, Evonik “got away with a black eye.” The general conditions are “not getting any easier”: “We will therefore continue our fundamental restructuring of the group,” emphasized Kullmann.