Evonik plans to cut up to 1,000 administrative and sales positions globally by 2020 to meet its cost reduction target, according to a June 27 press release. In the fall of 2017, Evonik set itself a target of permanently reducing administrative and selling expenses by $231.1 million worldwide.
“Our goal is to build a best-in-class specialty chemicals company,” said Christian Kullmann, Chairman of Evonik’s Board of Management. “To get there we need three things: a balanced portfolio, leading innovative capability, and a new, performance-oriented corporate culture. To this end, we are now making a big step forward on the cost side. We want to accelerate decision-making and strengthen cost-awareness.”
The first $57.8 million of the permanent savings will be achieved this year and will mainly comprise material costs.