Evonik to cut some 2,000 jobs as Q4 loss narrows, sales decline
Evonik Industries, the speciality chemicals company, said on Monday that its pre-tax loss from ongoing operations was €20 million in the fourth quarter, lower than the €251 million loss for the same quarter a year ago.
The company also announced its decision to slash up to 2,000 jobs globally involving about 1,500 jobs in Germany, including management positions.
"We must not delude ourselves, even if there are slight signs of a recovery: What we are currently experiencing are not cyclical fluctuations, but massive, consequential changes of our economic environment," Christian Kullmann, chairman of the executive board
"We are addressing this challenge with the 'Evonik Tailor Made' program which will change our organizational structure for good," he further added.
Evonik said it expects to reduce cost by about €400 million after completing the program in 2026. After tax loss from continuing operations narrowed to €144 million from €281 million last year.
Excluding one-time items, the company posted adjusted loss of €56 million compared with profit of €94 million a year ago. Adjusted earnings before interest, taxes, depreciation, and amortization of EBITDA decreased to €312 million from €413 million last year.
Sales for the quarter declined to €3.604 billion from €4.34 billion in the previous year, primarily due to lower volumes. Additionally, the company plans to propose an annual dividend of €1.17 per share, unchanged from last year.
Looking ahead, the company expects adjusted EBITDA in the range of €1.7 billion-€2 billion for fiscal 2024. In 2023, adjusted EBITDA was €1.66 billion.
