Evonik is undergoing a deep organisational reorganisation, aimed at making the chemical group leaner and more agile. As part of the realignment, 7,000 of the company’s 32,000 positions are under review, according to reports. Of these, 2,000 jobs, including 1,500 in Germany, will be eliminated as announced earlier in the spring.

Additionally, infrastructure operations with 3,600 employees will be spun off, or completely sold. Compulsory layoffs in operating units are ruled out until 2032.

The core restructuring, beyond the streamlining program „Evonik Tailor Made“ launched in fall 2023, involves a divisional overhaul. Previously, the 14 business units were grouped into four divisions. As of April 1, there will be just two. The Custom Solutions division will combine the so-called growth businesses, which prioritise customer proximity and innovation. The Advanced Technologies division will house units characterised by high technological expertise and a focus on process efficiency. Each division will generate roughly 6 billion euros in revenue.

The businesses assigned to Advanced Technologies primarily aim to generate cash flow, which will be reinvested into growth segments. Consequently, Evonik plans to focus future acquisitions on Custom Solutions. CEO Kullmann firmly rejected speculation that the reorganisation could signal a breakup of the group. He emphasised that both segments complement each other, and play equally important roles in creating sustainable value for the company. The new structure will allow for clearer strategic focus, resource allocation, and better management tailored to each business model.

With this reorganisation, Evonik is also moving away from the „specialty chemicals“ label that Kullmann introduced when he became CEO in 2017. „Its meaning has been completely blurred, and no longer sufficiently differentiates us in the eyes of our customers and the capital markets“, he explained. A new label is still under consideration.

The „Evonik Tailor Made“ program is already in full swing. Beyond job cuts, the focus is on streamlining the organisation to reduce bureaucracy. Of the 2,000 positions to be eliminated by the end of 2026, 500 will be leadership roles. Additionally, 1,000 managerial positions will be converted into specialist roles, reducing leadership levels from ten to a maximum of six. The number of organisational units will also shrink from the current 8,600 to fewer than 5,600.

Evonik’s leadership overhaul does not hold back at top management level. The division management level will will be eliminated entirely. Johann-Caspar Gammelin, head of the Nutrition & Care division, and Joachim Dahm, head of the Performance Materials division, both being absorbed into the two new divisions, will retire. Dahm, who also oversaw the carve-out of technology and infrastructure activities, effectively worked himself out of a role.

„The carve-out of infrastructure operations in Marl and Wesseling will be completed by early fall 2025. After that, we are open to a sale or partnership with other site operators“, said Kullmann.

The C4 chemistry business, the last remaining unit under the Performance Materials division, will be integrated into the infrastructure unit, and has long been up for sale. C4 products are used in diverse applications, such as propellants in hairspray, plasticisers for PVC, or raw materials for tyre production. With around 1,000 employees, it is one of Evonik’s last commodity chemical businesses. The unit has been legally independent for a year, but potential buyers have not been queuing up. However, Kullmann highlights that there is no pressure to sell quickly, saying that "we will not sell at a bargain price.“