Redesign plan announced by chemical corporation
Evonik's Game-Changer: A New Look for a Chemical Powerhouse
Gear up, folks, ‘cause Evonik, the chemical juggernaut, is shaking things up in a major way! This German powerhouse is ditching its traditional setup for a sleeker, more agile structure aimed at generating cash flow and driving innovation. Here's the lowdown on their reorg, job cuts, and future acquisitions.
Evonik 2.0
After reviewing 7,000 out of its 32,000 positions, Evonik announced the chopping block for about 2,000 jobs, including 1,500 in Germany, as part of its restructuring plan. Additionally, they'll be spinning off or selling off infrastructure operations employing 3,600 people. But don't fear compulsory layoffs just yet, they're on hold till 2032.
The reorg doesn't stop there, though. They're tossing out that old "specialty chemicals" label and crafting a new one to better represent their identity. With the "Evonik Tailor Made" program already in progress, their new structure will boil down to just two divisions: Custom Solutions and Advanced Technologies, each generating around 6 billion euros in revenue.
Custom Solutions vs Advanced Technologies
Custom Solutions, which will be composed of businesses emphasizing customer proximity and innovation, will be their primary growth engine. On the other hand, Advanced Technologies will focus on high-tech expertise and process efficiency, aiming to generate cash flow for reinvestment into growth segments. Sayonara to potential acquisitions in Advanced Technologies, Evonik's got its eyes on Custom Solutions from now on.
Boss Drop and Flattened Hierarchies
The leadership shake-up reaches the top tiers, with the division management level getting axed completely. Johann-Caspar Gammelin and Joachim Dahm, heads of Nutrition & Care and Performance Materials, respectively, are retiring and being subsumed into the new divisions. Evonik is trimming the fat, shrinking the number of leadership roles from ten to a max of six, and nixing the number of organizational units from the current 8,600 down to fewer than 5,600.
Sale or Partnership
Evonik is carving out its infrastructure operations in Marl and Wesseling, with a completion date set for early fall 2025. They're leaving the door wide open for a sale or partnership with other operator prospects.
The C4 chemistry business, their last commodity chemical asset, is up for grabs, but potential buyers have been scarce. Fear not, though, because Evonik won't be rushing into any fire sale shenanigans!
Innovation, Sustainability, and Profit
Evonik is all about green tech and biosolutions, placing its bets on renewable resources and eco-friendly products for industries such as cosmetics[4]. As part of their slimming down process, they've sold off energy and real estate sectors to concentrate exclusively on specialty chemicals for maximum efficiency[5].
In the Pipeline
No definitive plans for future acquisitions or job eliminations have been announced. However, with a focus on specialty chemicals and green tech, it's safe to assume that roles not aligned with this focus may see adjustments in the future.
So there you have it, Evonik's steaming ahead with investments in their core business areas, strategic acquisitions, and operational efficiency, all while setting their sights on a greener future. Buckle up and watch the chaos unfold!
[1] Evonik Industries AG (https://corporate.evonik.com/)[2] Evonik's Stock Exchanges (https://corporate.evonik.com/investors/ir_calendar)[3] Evonik's Financial Reports (https://corporate.evonik.com/results)[4] Evonik's Sustainability Efforts (https://corporate.evonik.com/sustainability)[5] Evonik's Investments and Acquisitions (https://corporate.evonik.com/investors)
- Evonik's restructuring plan includes the elimination of about 2,000 jobs and the spinning off or selling of infrastructure operations, affecting around 3,600 employees.
- The new structure of Evonik, called 'Evonik Tailor Made', will consist of two divisions: Custom Solutions and Advanced Technologies, each generating approximately 6 billion euros in revenue.
- The Custom Solutions division will focus on customer proximity, innovation, and growth, while Advanced Technologies will emphasize high-tech expertise and process efficiency.
- Evonik is considering potential acquisitions in its Custom Solutions division, moving away from acquiring companies in the Advanced Technologies sector.
