EUROPEAN PLASTICS NEWS
Published: November 6, 2014 9:53 am ET
Updated: November 6, 2014 9:55 am ET
Image By: Lanxess AG
Lanxess CEO Matthias Zachert
German chemical company Lanxess AG has will reduce its global workforce by 1,000 by the end of 2016.
The job cuts, Lanxess states, are part of the first of its three phase realignment program. There will be a reduction of total headcount by about 1,000 positions worldwide by the end of 2016, with around half being in Germany. The affected jobs will be mainly in the administrative and service units, marketing and sales, as well as in research and development, says the company.
It hopes the reduction will result in exceptional charges of 150 million euros ($186.4 million) being incurred through the end of 2016, including around 100 million euros ($124.2 million) already in 2014.
“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 of Lanxess.
Lanxess said it agreed with the employee representatives on a severance program to implement the personnel measures at its German sites. It stated that affected employees will be offered severance payments, advisory services and support in finding new jobs outside of Lanxess. Solutions have already been found for more than half of the roughly 500 employees affected in Germany, but Lanxess says it cannot rule out dismissals for operational reasons.
“These job reductions are tough. However, we have reached a fair agreement with the employee representatives in Germany after a series of constructive negotiations,” said Rainier van Roessel, member of the board of management and labor relations director of Lanxess.
The announcement came along with the company’s third quarter 2014 results of 2.04 billions euros ($2.53 billion), compared to 2.05 billion euros ($2.54 billion) for the same period of 2013, with Lanxess stating that marginally higher volumes compensated for slightly lower prices.
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