Evonik to cut 3,200 more jobs by 2029, exits polyester business as German chemicals crisis deepens

Scale of the cuts

Evonik announced on Thursday that it will eliminate approximately 3,200 additional jobs worldwide between 2027 and the end of 2029, with 2,150 of those positions located in Germany. The reduction amounts to roughly 10 percent of the group's global workforce, which stood at around 31,000 at the end of March 2026, down from more than 31,000 a year earlier. The new programme follows an existing efficiency drive, launched in October 2023 under the name "Evonik Tailor Made," that is already cutting about 2,800 jobs through the end of 2026. Germany bears a disproportionate share because roughly 20,000 of the company's 32,000 employees are based there.

Leadership rationale

Chief Executive Christian Kullmann attributed the cuts to a deteriorating external environment.

“The global political situation is uncertain and economic growth remains persistently weak. At the same time, international competition is getting tougher.”

Kullmann added that the group must become stronger in this climate and that it holds its fate in its own hands. The management sees significant savings potential through digitalisation, increased efficiency, and outsourcing. Production relocations abroad are also under review.

Social partnership and union response

Labour director Thomas Wessel stated that the job reductions will be handled in a socially responsible manner, with details to be worked out with social partners in the coming weeks. Compulsory redundancies remain excluded until 2032. IG BCE union representative Alexander Bercht acknowledged the positive aspect that no forced layoffs had occurred and that a large-scale relocation of jobs abroad had been prevented, but warned that repeated austerity programmes create no sustainable future prospects.

“It is clear: employees must not bear the burdens of a difficult market situation alone.”

Polyester exit

The group will discontinue its global polyester business in 2027 within the Custom Solutions segment, a unit that has been unprofitable for years and generates annual revenue of roughly 150 million euros. Board member Lauren Kjeldsen pointed to global competitive pressure and structural disadvantages in Europe, saying none of the alternatives examined were economically viable long-term. The closure affects 266 jobs at the Witten site, 45 at Marl, and 35 at a production facility in Shanghai.

Industry-wide crisis

The German chemical industry is enduring one of its toughest crises in 30 years, squeezed by weak demand, high energy prices, pricing pressure from Asia, and geopolitical tensions. Industry association VCI has warned of a potential collapse of the country's third-largest industrial sector after automotive and mechanical engineering. Other firms are also cutting back: specialty chemicals maker Wacker plans to eliminate more than 1,500 positions by the end of 2027, predominantly in Germany. Evonik shares fell over 3 percent on the announcement, making them among the biggest losers in the MDax index.

Earlier restructuring

Evonik has already been reshaping itself for years under Kullmann's leadership. Businesses with roughly 3,500 employees at the Marl and Wesseling sites were carved out into a wholly-owned subsidiary called Syneqt, which could be sold. End-of-2025 figures showed the workforce at 31,053, nearly 900 fewer than a year prior. The company has not yet quantified the cost of the new restructuring programme or specified the severance terms.