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Evonik Shares Rise on Plan to Cut 3,200 Jobs, Shift to Growth Markets
Summary
German specialty chemicals maker Evonik announced a significant restructuring that includes 3,200 job cuts and a strategic pivot to faster-growing regions, sending its shares up 3%.
Shares in Evonik (EVKn) climbed 3% on Tuesday after the German specialty chemicals company announced a major restructuring plan designed to lower costs and redirect capital toward high-growth markets.
Strategic Overhaul Details
The plan, which represents the second phase of its "Evonik Tailor Made" program, will see the company cut 3,200 jobs between 2027 and 2029. The company stated that approximately 2,150 of these positions will be in Germany.
Evonik plans to achieve the workforce reduction through measures such as not filling vacancies, offering early retirement, and providing severance packages for voluntary departures. The company said the move will free up funds for growth investments amid what it described as weak economic conditions and structural challenges for the chemicals industry.
Pivot to Growth Markets
AdA key part of the strategy involves shifting investment toward faster-growing markets in Asia and the Americas to create a more balanced global revenue distribution. Evonik noted it has already launched healthcare and biotechnology projects in Canada and Slovakia, with total investment in the hundreds of millions of euros.
As part of its realignment, Evonik will also create a new business line, Designed Polymer Solutions, which will combine activities serving the aerospace, automotive, and gas separation markets. The company confirmed that its planned divestments of the C4 chemicals business Oxeno and the infrastructure unit Syneqt remain on track.
Company Background
The first phase of Evonik's restructuring covers the period from 2024 to 2026, with detailed implementation measures for the second phase to be finalized by the end of 2026. In 2025, the group generated sales of €14.1 billion and an adjusted EBITDA of €1.9 billion, according to company figures. Evonik currently employs about 31,000 people worldwide.
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