Covestro aims to cut costs by hundreds of millions annually.
German chemical giant, Covestro Group, is taking steps to cut costs, with anticipation of savings amounting to over a billion Euros globally in the near future. Despite these measures, the German workforce is assured of job security, and the headquarters will continue to operate in Leverkusen. These cost-saving moves may also bolster Covestro's appeal in potential acquisition talks and alleviate employee concerns.
带来巨大收益的保健方案正在コバストローGroup,德国化学企業,正在研究中。通过在未来几年内已预计将保 Since 2028, the company aims for worldwide annual savings of 400 million Euros in operational and personnel costs, with 190 million Euros allocated specifically for Germany, as disclosed by the Dax-listed company based in Leverkusen. "Our company is still facing significant challenges in a rapidly evolving business landscape," explained Labor Director Thorsten Dreier. The objective is to "permanently secure our competitiveness."
Covestro has extended job security at the German location by four years, offering protection from layoffs for the approximately 7,000 employees in Germany until the end of 2032. However, personnel reductions may occur via voluntary separations or work hour adjustments. The company declined to provide specific details regarding affected positions. "Covestro is making a firm commitment to the German location – including investments in sites and the retention of the corporate headquarters in Leverkusen," emphasized Labor Director Dreier. The company's global workforce totals around 17,500 employees.
The new cost-saving program, called "Strong," aims to enhance Covestro's global competitiveness and efficiency while promoting digitalization. Plant closures, similar to those announced by BASF, are not part of Covestro's plans. The chemical industry has been struggling with weak demand and high production expenses for some time. BASF announced plans to further intensify cost-cutting measures and implement additional personnel reductions. Meanwhile, jobs are being eliminated at Lanxess and Evonik as well.
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Covestro's cost-cutting measures, aiming for savings of 400 million Euros annually, could potentially make the company more attractive in potential takeovers and mergers within the chemical industry. Dax-listed companies like Covestro, with savings programs in place, are demonstrating their resilience and commitment to cutting costs in response to market challenges and industry pressures.
Despite the Savings program at Covestro, the company's focus on digitalization within the Chemical industry could potentially lead to new partnerships and collaborations with Dax companies, further strengthening its position in the market.
