Lanxess cut 1,000 jobs worldwide by end 2016

Lanxess to cut 1,000 jobs worldwide by end of 2016

11:45 AM, 7th November 2014
Lanxess to cut 1,000 jobs worldwide by end of 2016

COLOGNE, GERMANY: The specialty chemicals company Lanxess is making rapid progress with its three-phase realignment programme. With the implementation of the first phase, aimed at improving the competitiveness of the business and administrative structure, the Group plans to make total annual savings of €150 million as of the end of 2016. Lanxess already expects savings of about €20 million in the current year.

The first phase of the realignment will result in a reduction of total headcount by about 1,000 positions worldwide by the end of 2016 – roughly half of which will be in Germany. The affected jobs will be mainly in the administrative and service units, marketing and sales, as well as in research and development. The headcount reduction will result in exceptional charges of €150 million being incurred through the end of 2016 – including around €100 million already in 2014.

At the beginning of November 2014, Lanxess initiated the second phase of the realignment program, which is aimed at increasing its operational competitiveness. This phase focuses on the optimization of sales and supply chains and of production processes and facilities. The relevant measures will be implemented in 2015 and 2016.

The third phase of the program, which is aimed at improving the competitiveness of the business portfolio, will focus on horizontal and vertical cooperations in the rubber business. This phase is also to be implemented in 2015 and 2016.

“The realignment lays the foundation for Lanxess to return to sustainable growth in the mid-term. Downsizing the workforce is a necessary measure to improve our competitiveness,” said Matthias Zachert, Chairman of the Board of Management, Lanxess AG.

Related News - Lanxess to increase iron oxide pigments capacity in China


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