Evonik is reducing bureaucracy, streamlining processes, and cutting administrative and selling expenses. To achieve the target of permanently reducing the cost base by €200 million by the end of 2020, management and employee representatives have agreed on key points. The associated analysis of all administrative and sales functions has been completed.
In fall 2017, Evonik set itself the target of permanently reducing administrative and selling expenses by €200 million worldwide. About two-thirds of the cost savings will come from administration and a third will come from sales functions.
The first €50 million of these permanent savings will be achieved this year and will mainly comprise material costs. To realize the remaining €150 million, a detailed analysis of all administrative support functions was carried out in recent months.
As a result of this analysis, up to 1,000 jobs will be cut in administration and sales by the end of 2020. Management and employee representatives have agreed to implement the process in a socially acceptable manner. The agreement that rules out business-related dismissals for employees in Germany has been extended until mid-2023. Evonik will also be using natural fluctuation to reduce the number of jobs in administration and sales worldwide. Vacant positions will be examined to see whether it is necessary to fill them.