Evonik Unveils Deep Cost Cuts

German specialty chemical firm Evonik Industries is set to embark on a restructuring program aimed at cutting annual operating costs by up to $340 million by 2017. As part of the exercise, Evonik will trim its executive board from six to four members but will dismiss no other staff for operational reasons until 2019 at the earliest. The firm aims to make its administrative organization leaner and more efficient by weeding out duplication of responsibilities. Evonik says its administrative expenses have risen 26% since 2008. Employees are wary of the move. “We will be keeping a critical eye on the administrative restructuring announced by the company,” says Ralf Hermann, chairman of Evonik’s Central Works Council, which represents the company’s workers.