en.Wedoany.com Reported - Evonik has announced a new round of restructuring and cost-cutting measures to be completed by 2029, planning to lay off approximately 3,200 employees globally and terminate its global polyester business.

The layoff plan includes cutting 2,150 positions in Germany between 2027 and the end of 2029. The measures involve global business and administrative units, with Evonik stating that cost savings will be achieved through increased efficiency, digitalization, outsourcing, and potential offshoring.

The new measures follow the ongoing "Evonik Tailor Made" group project and the restructuring of operational business efficiency programs. Previously, the company planned to cut approximately 2,800 positions from October 2023 to the end of 2026.

Evonik CEO Christian Kullmann stated that the global political situation remains uncertain, economic growth continues to be weak, and international competition is increasingly fierce, requiring the company to become stronger in such an environment.

Evonik said the layoffs will be socially acceptable, with specific details to be finalized with employee representatives in the coming weeks.

As part of the restructuring, Evonik will terminate its global polyester business within its Custom Solutions division by 2027. This move affects production sites in Witten and Marl, Germany, as well as Shanghai, China.

Evonik Executive Board member Lauren Kjeldsen stated that terminating the polyester business and closing production is an economically necessary step, as global competitive pressure, structural disadvantages in Europe, and declining market dynamics mean that no alternative is economically viable for Evonik in the long term.

Evonik said the polyester business generates annual revenue of approximately €150 million but has been unprofitable for years. The Witten plant, with 266 employees, will close in 2027; 45 positions will be cut in Marl, and 35 positions will be cut at the Shanghai plant.

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