Stock Markets June 18, 2026 06:17 AM

Evonik to Cut 3,200 Roles Worldwide, Exit Polyester Business by 2027

German chemicals group extends cost-reduction program as it plans large-scale job reductions, mainly in Germany, and shutters polyester unit

By Derek Hwang
Share
Twitter Reddit Facebook LinkedIn

Evonik Industries said Thursday it will eliminate 3,200 positions globally between 2027 and 2029, with the majority of reductions in Germany. The announcement extends a cost-cutting program that will have already reduced about 2,800 roles by the end of 2026. The company also intends to leave its global polyester business in 2027, affecting roughly 350 roles across sites in Witten, Marl and Shanghai.

Evonik to Cut 3,200 Roles Worldwide, Exit Polyester Business by 2027
Summarize with
ChatGPT Perplexity Claude Grok Gemini

Key Points

  • Evonik will eliminate 3,200 positions globally between 2027 and 2029, extending its existing cost-reduction program.
  • Approximately 2,150 of the new job cuts will be in Germany; the company will have cut about 2,800 roles under the current program by end-2026.
  • Evonik plans to exit its global polyester business in 2027, impacting around 350 positions at Witten and Marl in Germany and at its Shanghai facility.

Evonik Industries announced Thursday that it will cut 3,200 jobs worldwide over the period 2027 to 2029, with most of those reductions concentrated in Germany. The move extends a company-wide cost-reduction program that was due to conclude this year.

Under the existing program Evonik expects to have removed roughly 2,800 positions by the end of 2026. The new phase of reductions will add a further 3,200 job eliminations over the following three years, of which 2,150 are planned for Germany as the business contends with mounting competitive pressure and subdued economic activity.

Evonik's chief executive, Christian Kullmann, framed the decision in the context of broader uncertainty. "The global political situation remains uncertain, and economic growth is persistently weak," he said in a statement accompanying the announcement.

In addition to workforce reductions, Evonik said it will exit its global polyester business in 2027. That exit is expected to affect about 350 roles across two German facilities in Witten and Marl, as well as at the company's location in Shanghai, China.

Lauren Kjeldsen, the executive board member responsible for the polyester unit, said the decision followed an assessment of options for the business. "Global competitive pressure, structural disadvantages in Europe, and declining market dynamics mean that none of the alternatives examined would have been economically viable for Evonik in the long term," she said.


Details on the geographic breakdown and timing of the wider workforce reductions were limited to the figures provided above. The company characterized the combination of competitive intensity and weak demand as the rationale for extending its cost-reduction measures and for withdrawing from polyester manufacturing.

This restructuring will affect operations where the polyester business is currently active, and it will enlarge the headcount reductions already scheduled under the current program through 2026. Evonik did not provide additional operational or financial projections tied to the measures in the announcement.

Risks

  • Continued weak economic growth and global political uncertainty could pressure demand and margins in the chemicals sector, impacting corporate revenues and employment levels.
  • Structural disadvantages and intensifying global competition in polyester markets may render continued operations in certain regions uneconomical, leading to asset exits and further job losses.
  • Concentration of additional job cuts in Germany presents labor market and operational risks for Evonik's European footprint and local supply chains.

More from Stock Markets

Stellantis shares slide after launch of new Compact Van variant Jun 18, 2026 Goldman Sachs trims Zegna rating to neutral as shares surge on turnaround progress Jun 18, 2026 Pfizer CFO Dave Denton to Depart in August; Cecile Guegan Named Interim Jun 18, 2026 Lite Strategy Leads $1M Strategic Round for Litecoin Layer 2 Project LitVM Jun 18, 2026 U.S. Agrees to $725 Million Conditional Loan to Support Domestic Rare Earth Processing Jun 18, 2026