Cuts up to 7,000 seats work worldwide foresees the largest restructuring in the history of the chemical industry Evonikwith its leader predicting a “bleak” future for world trade.

The largest group of specialists chemicals in Europea member of the M-DAX index, with 32,000 employees, will implement a “comprehensive restructuring” plan, which, among other things, includes removing hierarchy levels and work item change for 1,000 managersbut also a new board of directors with the highest participation rate of women in the stock market index (60%).

In the context of the consolidation plan, Evonik going to sell parts of its activitiesresulting in approx 5,000 employees either lose their position or work in the future for new ownership. At the same time, the group plans a red tape reduction program and 2,000 jobs by the end of 2026, including 500 management positions. However, the Group clarified that the possibility of layoffs for operational reasons is excluded.

Evonik CEO Christian Kuhlmann also explained that the number of hierarchy levels will be reduced from ten to six. This, together with the reduction of business fields “they will make Evonik faster and more efficient, while helping to save resources.”

Mr. Kuhlman justified the Group’s decisions by referring to “bleak” days for global trade ahead, following the return of Donald Trump to the White House. “I believe that rules-based global trade as we know it, is now nearing its end. We will see more tariffs and other trade barriers. So it’s important to be closer to the customer so we don’t suffer from the tariffs”the head of the Group emphasized and explained that Evonik will create more local production capacity in important customer countries in the coming years, with an emphasis mainly on Asia, which currently represents 20% of sales and the goal is to reach 1/ 3.