Covestro to lay off 10% of workforce

Covestro plans to eliminate up to 1,700 jobs—about 10% of its workforce—as part of a reorganization plan the firm unveiled in July aimed at becoming a sustainable, circular materials producer. Up to 950 of the jobs to be cut will be in Germany. Covestro is working out how many employees it will cut from each business unit and location. The company aims to complete the process by the end of 2023. “We are currently examining all our activities worldwide to determine whether they fit with our strategy and vision and to what extent they contribute to sustainable growth,” Covestro says. On April 1, the firm completed its acquisition of DSM’s resins and functional materials business for $1.8 billion. Subsequently, the company reorganized its former three business units of polyurethanes; polycarbonates; and coatings, adhesives, and specialties into seven entities. The planned job cuts follow strong financial results. Covestro recorded a 550% year-on-year increase in second-quarter pretax profits, to $959 million, driven by volume and pricing improvements across all segments.