Bracing for Change: Evonik Simplifies Operations to Boost Agility and Sustainability
From Cologne, Germany
Evonik faces uncertainty over its organizational structure adjustment
Chemical giant, Evonik, is streamlining its operations in a bid to become more agile, efficient, and sustainable. In this transformation, the company will condense its four divisions into two and reorganize into 13 business units, based on their business models - process-driven and product-driven. The C-Chemie division, set for sale, will be integrated into the infrastructure unit. The restructuring signifies potential loss for 7,000 positions within the current 32,000-strong workforce.
Evonik's radical makeover focuses on internal growth, cost management, and sustainability instead of acquisitions, a strategy it plans to delay until 2027. Amid escalating trade tensions and inflationary pressures, Evonik aims for sustainable growth, trimming hierarchical layers from 10 to 6 and eliminating over 3,000 organizational units to align business lines more directly under the Executive Board. This rearrangement creates two core segments: Custom Solutions, targeting niche markets with high-margin products, and Advanced Technologies, emphasizing operational excellence in specific sectors. The ultimate goal is to channel freed-up capital and management resources to enhance assets and hasten a shift toward more sustainable and resilient business models amid complex global market conditions [1].
As part of the reorganization, approximately 2,000 jobs worldwide are at risk, with 1,500 in Germany. Pending the sale of infrastructure businesses employing 3,600 people, their future may not be under the Evonik banner. However, dismissals due to operational reasons will not occur until 2032 [2].
In essence, Evonik's restructuring seeks to create a more nimble, sustainable organization that will navigate market uncertainties, with roughly 1,100 jobs potentially on the line due to the reorganization [1].
[1] Source: Reuters, Business Insider, and Evonik[2] Source: Frankfurter Allgemeine Zeitung
The chemical giant, Evonik, is reorganizing its business units, aiming to streamline operations and focus on internal growth and sustainability. This restructuring involves consolidating into two core segments: Custom Solutions, targeting niche markets with high-margin products, and Advanced Technologies, emphasizing operational excellence in specific sectors.
The transformation of Evonik's operations also extends to the finance sector, with the company aiming to free up capital and management resources to enhance assets, ultimately aiming for a more sustainable and resilient financial structure amid complex global market conditions.
