Evonik, a leading specialty chemicals company, has unveiled a significant restructuring plan. The changes, set to take effect on April 1, 2025, involve a new segment structure, a leaner management model, and the elimination of thousands of organizational units, ultimately leading to layoffs.

The company will transition from its current four-division structure of to two new segments: Custom Solutions and Advanced Technologies. This shift is designed to allow for more focused management and resource allocation, catering to the distinct business models of each segment. Custom Solutions will focus on innovation-driven, niche market products with strong customer relationships, while Advanced Technologies will prioritize efficiency, technological expertise, and cost leadership.

A key element of the restructuring is the elimination of the division management level. This move will remove an entire layer of management. Business lines within the new segments will report directly to members of the Executive Board. This change is expected to result in a significant reduction in management roles.

The restructuring program, dubbed “Evonik Tailor Made,” aims to reduce costs significantly by the end of 2026. Furthermore, more than 3,000 organizational units will be eliminated. While the company has not explicitly stated the exact number of job losses, it could lead to up to 7,000 job eliminations. This includes 2,000 jobs lost through layoffs and another 3,600 potentially impacted by the sale or transfer of businesses at the Marl and Wesseling sites.

“We have significantly improved the quality of our portfolio in recent years,” said Christian Kullmann, Chairman of the Executive Board. “In our current structure, it is no longer sufficient to solely focus on the criterion of specialty chemicals to drive the company forward. Its meaning has been completely blurred and no longer sufficiently differentiates us in the eyes of our customers and the capital markets. Going forward, we will manage Evonik in a more differentiated manner by leveraging the strengths of our two pillars: solutions and innovation-driven businesses on the one hand, and technology and efficiency-driven businesses on the other. Our new management model takes this approach into account.”

The new segment structure will be led by newly appointed Executive Board members. Lauren Kjeldsen, currently head of the Smart Materials division, will lead Custom Solutions, while Claudine Mollenkopf, currently head of the Specialty Additives division, will lead Advanced Technologies.

The announcement also included news of executive departures. Harald Schwager, Deputy Chairman of the Executive Board, along with Johann-Caspar Gammelin, head of the Nutrition & Care division, and Joachim Dahm, head of the Performance Materials division, will be retiring.