Germany's Evonik to cut 3,200 jobs amid industry crisis

German chemical company Evonik announced on Thursday that it will cut 3,200 jobs, equal to about 10 percent of its global workforce, by 2029, as the ongoing crisis affecting the energy-intensive chemical industry continues to intensify, News.Az reports, citing AFP.

The chemical sector is one of the most important parts of Europe’s largest economy, but it has been under pressure due to persistently high costs, which have been further worsened by an energy price shock linked to the Iran war.

Evonik, headquartered in the western German city of Essen and producing a wide range of specialised chemicals, said the job reductions are intended to support the company’s transformation process.

Chief Executive Officer Christian Kullmann stated: “The global political situation remains uncertain, and economic growth is persistently weak.” He added: “At the same time, international competition is becoming increasingly fierce.”

According to the company, the job cuts will affect all business and administrative departments worldwide. Of the 3,200 positions to be eliminated, 2,150 are located in Germany. Evonik also said it will hold discussions with employee representatives in the coming weeks.

In addition, the company announced it will fully shut down its polyester business next year, with facilities in both Germany and China affected.

The newly announced reductions follow earlier rounds of job cuts at Evonik in recent years. The company currently employs around 31,000 people worldwide.

Separately, the government and industry groups announced in March a support plan for the chemical sector, which includes subsidies for electricity prices and proposed changes to the European Union’s flagship carbon market system.

News.Az 

By Nijat Babayev