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German chemical company to cut 3,200 jobs as crisis worsens
German chemical company Evonik said Thursday that it would cut 3,200 jobs, or around 10 percent of its workforce, by 2029 as a crisis battering the energy-intensive industry accelerates.
Chemicals is one of the most important sectors in Europe's biggest economy, but it has been struggling with high costs, exacerbated recently by the energy price shock from the Iran war.
Evonik, which is headquartered in the western city of Essen and makes a range of specialised chemicals, said the cuts were aimed at advancing the company's transformation.
"The global political situation remains uncertain, and economic growth is persistently weak," CEO Christian Kullmann said.
"At the same time, international competition is becoming increasingly fierce," he added.
The job losses will be across all business and administrative departments worldwide, Evonik said.
A total of 2,150 of the positions being axed are in Germany, with talks to be held with staff representatives in the coming weeks.
The company also said it would close its polyester business entirely next year, with sites in Germany and China affected.
The cuts announced Thursday follow a previous round of job losses at Evonik in recent years. Evonik now has around 31,000 employees globally.
The government and industry groups announced in March a plan to help the chemical sector, which includes subsidising power prices and seeking changes to the European Union's flagship carbon market scheme.
P.Hwang--SG
