By Nina Kienle
Evonik said that it would cut up to 2,000 jobs, or around 6% of its workforce, to save costs after it posted a narrowed net loss for the fourth quarter.
The German chemicals company said Monday that it doesn’t expect an economic recovery this year and is seeking to cut up to 2,000 jobs by 2026 in order to reduce costs and establish a new organizational structure. Of these jobs, 1,500 are to be cut in Germany, it said.
The company expects cost reductions of around 400 million euros ($433.6 million) annually by the end of 2026, it said.
For its fourth quarter, Evonik posted a net loss of EUR146 million compared with a loss of EUR284 million in the same period of the prior year. Sales dropped 17% to EUR3.60 billion, and the company booked higher financial expenses and taxes.
Adjusted earnings before interest, taxes, depreciation and amortization fell 24% to EUR312 million.
The company said it would keep its dividend unchanged at EUR1.17 a share.
For 2024, Evonik forecast an adjusted Ebitda of between EUR1.7 billion and EUR2.0 billion with sales of between EUR15 billion and EUR17 billion.
“What we are currently experiencing are not cyclical fluctuations, but massive, consequential changes of our economic environment,” Chief Executive Christian Kullmann said.
Write to Nina Kienle at nina.kienle@wsj.com
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