Evonik Launches Largest Restructuring Plan in History, Cutting 7,000 Employees

Recently, global chemical industry leader Evonik Industries announced it will move forward with a new business segment and adopt a more streamlined and efficient management structure. To this end, the company is set to launch its largest restructuring plan in history, which will involve a reduction of approximately 7,000 employees, accounting for one-fifth of its global workforce of 32,000.

Evonik operates four main business divisions: Specialty Additives, Nutrition and Care, Smart Materials, and Functional Materials. However, the company announced that in the new organizational structure, it will focus on developing “Customized Solutions” and “Advanced Technologies” as its two core areas. Such a large-scale restructuring plan will inevitably lead to personnel adjustments, and Evonik is determined to streamline management processes and eliminate bureaucratic obstacles within the group.

Evonik’s financial report for the third quarter of 2024 showed a growth rate of 19%, reaching €577 million. In the past nine months, Evonik’s revenue has reached €1.68 billion, exceeding the total revenue level for the entire year of 2023. Additionally, the group’s sales in the third quarter increased by 2% year-over-year, reaching €3.83 billion. Despite strong performance, Evonik has decided to continue with the restructuring plan.

In March of this year, Evonik announced it would cut 2,000 jobs globally, with most being management positions, and aimed to retain about 60% of its employees. By August, Evonik revealed that it had reserved €238 million (approximately ¥1.82 billion) for administrative job cuts. If this fund is used for severance pay for the 7,000 employees being laid off, each employee would receive approximately €250,000 (about ¥1.91 million) in compensation.

Previously, when Volkswagen laid off employees, reports indicated that the highest compensation was €450,000, approximately ¥3.5 million. SAP offered a maximum compensation of 33.5 months' salary during layoffs in Germany. Intel provided up to €500,000 in compensation during layoffs in Ireland. Due to these companies offering generous severance packages, many employees were attracted to voluntarily apply for early retirement. With the possibility of receiving millions of euros in compensation, many employees are naturally inclined to choose early retirement.

Evonik is a global leader in specialty chemicals, headquartered in Germany, with over 180 years of history and approximately 32,000 employees worldwide. The company maintains collaborations with well-known cosmetic companies such as L'Oréal and Marubi.

Among foreign enterprises in the chemical industry, Evonik has a good reputation, with a comprehensive benefits system including health insurance, pension plans, employee training and development, performance-oriented compensation systems, diversity policies, and a ratio of over 40% female managers, making it a company friendly to women.

1.  Recently, global chemical industry leader Evonik Industries announced it will move forward with a new business segment and adopt a more streamlined and efficient management structure. To this end, the company is set to launch its largest restructuring plan in history, which will involve a reduction of approximately 7,000 employees, accounting for one-fifth of its global workforce of 32,000.
Evonik operates four main business divisions: Specialty Additives, Nutrition and Care, Smart Materials, and Functional Materials. However, the company announced that in the new organizational structure, it will focus on developing “Customized Solutions” and “Advanced Technologies” as its two core areas. Such a large-scale restructuring plan will inevitably lead to personnel adjustments, and Evonik is determined to streamline management processes and eliminate bureaucratic obstacles within the group.
Evonik’s financial report for the third quarter of 2024 showed a growth rate of 19%, reaching €577 million. In the past nine months, Evonik’s revenue has reached €1.68 billion, exceeding the total revenue level for the entire year of 2023. Additionally, the group’s sales in the third quarter increased by 2% year-over-year, reaching €3.83 billion. Despite strong performance, Evonik has decided to continue with the restructuring plan.
In March of this year, Evonik announced it would cut 2,000 jobs globally, with most being management positions, and aimed to retain about 60% of its employees. By August, Evonik revealed that it had reserved €238 million (approximately ¥1.82 billion) for administrative job cuts. If this fund is used for severance pay for the 7,000 employees being laid off, each employee would receive approximately €250,000 (about ¥1.91 million) in compensation.
Previously, when Volkswagen laid off employees, reports indicated that the highest compensation was €450,000, approximately ¥3.5 million. SAP offered a maximum compensation of 33.5 months' salary during layoffs in Germany. Intel provided up to €500,000 in compensation during layoffs in Ireland. Due to these companies offering generous severance packages, many employees were attracted to voluntarily apply for early retirement. With the possibility of receiving millions of euros in compensation, many employees are naturally inclined to choose early retirement.
Evonik is a global leader in specialty chemicals, headquartered in Germany, with over 180 years of history and approximately 32,000 employees worldwide. The company maintains collaborations with well-known cosmetic companies such as L'Oréal and Marubi.
Among foreign enterprises in the chemical industry, Evonik has a good reputation, with a comprehensive benefits system including health insurance, pension plans, employee training and development, performance-oriented compensation systems, diversity policies, and a ratio of over 40% female managers, making it a company friendly to women.