Thousands of Jobs Under Scrutiny

Melanie Steinbeck,

Evonik's Mass Layoffs: A Warning Sign for the Chemical Industry?

Evonik is restructuring the group and downsizing: The Essen-based specialty chemicals company is cutting thousands of jobs. But there is more to these job cuts than just a cost-cutting program: They reflect an industry that must redefine its future in the face of growing competitive pressure.

Evonik is restructuring—and downsizing: The Essen-based specialty chemicals company is cutting thousands of jobs. This is more than just a cost-cutting program; it is a response to an industry under constant pressure. © Marc Braner/stock.adobe.com

The chemical industry has long been regarded as a sector of long-term planning. Plants are built to last for decades, investments in the billions are planned, and product cycles are calculated over generations. But the reality of 2026 looks quite different. Hardly any major European chemical company can currently get by without restructuring programs. Now Evonik is also stepping up its restructuring efforts, sending a signal that extends far beyond the company itself.

The specialty chemicals company based in Essen announced in mid-June that it would cut an additional 3,200 jobs worldwide by the end of 2029. Of these, 2,150 jobs will be cut in Germany alone. The company had previously announced, as part of its “Tailor Made” program, that it would cut approximately 2,800 jobs by the end of 2026. In total, more than 6,000 jobs are under review or are already part of ongoing restructuring measures.

From Austerity Measures to Structural Reform

The latest announcement marks a turning point. While the program, launched in 2024, initially focused primarily on administrative structures and management levels, the restructuring is now having a much more profound impact on the Group’s industrial base.

Advertisement

Evonik attributes these measures to a combination of a weak global economy, ongoing competitive pressure, and structural disadvantages of Europe as an industrial location. CEO Christian Kullmann describes an environment characterized by sluggish growth and increasing international competition. The company aims to become more efficient, more digital, and leaner.

In addition to job cuts, the measures also include digitization, outsourcing, and an assessment of further relocations of functions abroad. According to the company, the cuts will be implemented in a socially responsible manner.

The End of the Polyester Business

This transformation is particularly evident in the polyester business. Evonik plans to discontinue its global polyester operations in 2027. Although the business unit still generates annual sales of around 150 million euros, it has been considered unprofitable for years.

The consequences are significant: The Witten facility, which employs 266 people, is set to close. Additional jobs will be cut in Marl and at the company’s Shanghai facility in China. According to the company, none of the alternatives considered proved to be economically viable in the long term.

Marl and Wesseling as a Test Case

At the same time, Evonik is restructuring its large integrated sites. The infrastructure and service operations at the Marl and Wesseling chemical parks have been transferred to the new company Syneqt. Going forward, approximately 3,500 employees will work there as part of an independent unit responsible for energy supply, logistics, security, and technical services. Industry observers see this as another step toward focusing on the core chemical business. At the same time, the new structure opens up the possibility of partnerships or investments by external investors in the future.

However, the IGBCE union urges that the consequences for employees not be overlooked. “The announced cuts are a severe blow to the affected colleagues. Now is the time to demonstrate that social partnership is effective and that the agreed-upon protective measures are consistently implemented. Employees must not be left to bear the burden of a persistently difficult market situation alone,” explains Alexander Bercht, a member of the Executive Board of the Mining, Chemical, and Energy Workers’ Union.

A symptom of the crisis in the German chemical industry

The restructuring at Evonik is not an isolated case. The German chemical industry has been struggling for several years with high energy prices, weak demand from key customer sectors, and growing competition from North America and Asia. Companies are responding with cost-cutting measures, portfolio streamlining, and organizational reforms.

What is remarkable, however, is the scale of the measures. At the end of 2025, Evonik employed approximately 31,000 people worldwide. The announced job cuts thus represent a significant portion of the workforce. At the same time, the company emphasizes its intention to focus more strongly on high-growth specialty chemicals businesses in the future.

Implications for Laboratories and Research

This creates conflicting perspectives for research, development, and analytics. On the one hand, Evonik continues to focus on technology-driven specialty chemicals and high-value-added applications, whose success depends largely on strong research and development efforts. On the other hand, every instance of Group-wide pressure to improve efficiency increases the pressure on research organizations and supporting laboratory departments to justify their existence.

This development serves as a prime example of how the role of industrial research is changing: It is no longer growth alone that sets the agenda, but rather the question of which technologies can actually deliver sustainable value in an increasingly competitive international environment.

The job cuts at Evonik are therefore more than just a personnel measure. They represent an attempt by a long-established chemical company to redefine its position in an industry where economic certainties are increasingly being called into question.

  • Xing Icon
  • LinkedIn Icon
Advertisement
Advertisement

You might also be interested in

Advertisement
Advertisement
Advertisement
Advertisement

Editorial

Integration Meets Reality

OT meets IT – the two worlds are meant to converge, data is meant to flow, and production is meant to become smart. Yet the reality in industry often remains stubbornly contradictory: while systems have long been technically interconnected, they...

read more...
Advertisement
Advertisement
Advertisement

Interview

Rethinking mobile energy

Electrification, battery storage and intelligent energy management are changing industry and construction sites. Lukas Krüger, product specialist for battery storage systems at Bredenoord, talks in an interview about trends, technologies and the...

read more...
Subscribe to our newsletter
Advertisement
Back to home