Evonik's global restructuring
Evonik announces 3,200 global job cuts by 2029 amid economic slowdown and restructuring
Anonymous
Key Points
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Evonik said the Executive Board and employee representatives agreed measures that will cover “all business and administrative units worldwide,” not just specific production areas.
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The company’s announcement sent its shares lower: the stock “extended its losses” and was down around 3% in the latest trading cited by MarketScreener.
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The extended restructuring is tied to Evonik’s “Tailor Made” program, which Article 2 says was launched in October 2023 and was initially scheduled to run until the end of 2026 before being prolonged through 2027-2029.
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Evonik provided additional detail on the polyester exit: the polyester business generated around €150 million in annual revenue, was “not profitable for years,” the Witten site (266 employees) will close in 2027, and the company will cut 45 jobs at Marl and 35 at its Shanghai production plant.
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On the macro backdrop, Germany’s chemicals association VCI reportedly refrained from a full-year growth forecast and VCI Managing Director Wolfgang Grosse Entrup said, “We see no sign of a turnaround,” citing additional uncertainty from the conflict involving Iran.
Evonik Industries will cut 3,200 more jobs worldwide by the end of 2029, the German specialty chemicals company announced on June 18, 2026. Two-thirds of those cuts — 2,150 positions — will fall in Germany, The Wall Street Journal reported.
The new round of layoffs extends Evonik's existing "Tailor Made" restructuring program, which already targets about 2,800 job cuts by the end of 2026. Combined, the two phases put the total reduction at roughly 6,000 positions since 2023. Evonik's shares fell about 3% on the news, according to MarketScreener.
Polyester Business Shut Down After Years of Losses
Evonik also said it will exit its polyester business entirely. The unit brought in around €150 million in annual revenue but "was not profitable for years," the company said. Evonik will close its Witten production site in 2027, cutting all 266 jobs there. It will also eliminate 45 roles in Marl and 35 at its plant in Shanghai, Investing.com reported.
The polyester unit struggled for nearly a decade. Rising raw material costs and stiff competition from large Chinese producers made the Witten site unworkable under current German energy prices. Evonik said the exit is final — there are no plans to sell or restructure the unit.
Tailor Made Program Stretched From 2026 to 2029
Evonik launched the "Tailor Made" program in October 2023. It was supposed to wrap up by the end of 2026. Now the company has extended it three more years. The new cuts cover "all business and administrative units worldwide," not just factories, Seeking Alpha reported.
The company employs about 30,600 people as of late March 2026, down from more than 31,000 a year earlier. Evonik said it plans to carry out the reductions through "natural fluctuation, voluntary severance, and early retirement." It is also exploring shifting some administrative work to lower-cost countries abroad.
Weak Growth and Geopolitical Stress Drive the Cuts
Evonik blamed the extended restructuring on slow economic growth, geopolitical uncertainty, and rising competition from abroad. The pressure on German chemical companies has been severe since energy costs spiked after 2022. High electricity and gas prices have made German plants harder to run profitably.
Germany's chemicals association VCI declined to issue a full-year growth forecast. VCI Managing Director Wolfgang Grosse Entrup said bluntly: "We see no sign of a turnaround." He pointed to additional uncertainty from the conflict involving Iran as a fresh risk weighing on the sector, according to Investing.com.
Workers Win Job Security Guarantees Through 2032
The cuts did not come without a deal for those who stay. Evonik's Executive Board and employee representatives agreed on the restructuring together. Workers remaining at German sites are expected to have job security protections through 2032 — a significant concession from management, according to MarketScreener.
Chief Human Resources Officer Thomas Wessel said the company would act in a "socially responsible manner." Analysts at Baader Bank warned, however, that prolonged restructuring could push top technical talent toward competitors in North America. The company said it is still hiring in research and development, just not in administration.
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