Reorganisation Gains Momentum
The announcement of the second phase of the “Evonik Tailor Made” programme triggered a rise in the Essen-based company’s shares, which gained 3.42% to EUR 17.83 by 12:30 CET on 22 September 2026. During this phase, the specialty chemicals manufacturer plans to eliminate 3,200 jobs worldwide between 2027 and 2029, with approximately 2,150 of those cuts affecting Germany. Interim CEO Claus Rettig, who took over on 1 September, said that the executive board, supervisory board and employee representatives agree on the need for a decisive response to the industry’s structural and economic crisis.
Five-Year Performance Remains Negative
The latest share price increase, however, follows a prolonged period of weak stock market performance. Evonik Industries shares have fallen by approximately 34% over the past five years, meaning the recent gain has recovered only a small portion of previous losses. The announced transformation therefore carries particular significance for restoring investor confidence.
Evonik Industries Stock Price Performance Over the Past Five Years [EUR]
(Source: CNBC)
Savings Without Compulsory Redundancies
To achieve the planned savings, management intends to rely on natural attrition, early retirement and voluntary departures with severance payments. This socially sensitive approach has eased investor concerns about potential labour disputes and the risks associated with implementing the changes. The transformation comes as Germany’s chemical sector faces high energy prices, weak demand and growing competition from subsidised Asian producers.
Asset Sales and New Investments
Alongside workforce reductions, the strategy includes reorganising the product portfolio according to the roles of individual business areas and reviewing subsidiaries and equity holdings. As part of these measures, Evonik intends to sell Syneqt, which brings together its infrastructure assets, and is also in talks to sell C4 chemicals producer Oxeno. In parallel, it will assess new investment projects in Asia and the Americas, where it sees more favourable growth prospects.
Confidence Partially Restored
The clearer strategic direction also helped partially offset the negative impact of Morgan Stanley’s move on 15 September, when the bank downgraded the stock to Equal-weight and set its price target at EUR 18. The positive market reaction thus reflected confidence in the combination of savings, a focus on growth and a socially responsible approach. As a result, the share price moved towards the upper end of its daily trading range and remained well above its 52-week low of EUR 12.49, although it was still below its high of EUR 19.21.
A Step Towards Sustained Growth
Evonik’s move shows that a determination to confront challenges can create new opportunities. Combining carefully managed cost reductions with expansion into dynamic markets sends a clear signal that the group is actively building its future. If the ambitious planned changes are put into practice, Evonik could be on course for a successful return to stable, long-term growth. Whether this bold restart translates into lasting success, however, will only become clear over the coming years.
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Source:
https://www.cnbc.com/quotes/EVKIY
