Management Strategy Covestro Planning Job Cuts

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Covestro, the Chemicals group is planning to cut up to 10 % of jobs worldwide. Up to 1700 jobs across the globe, and more than 900 in Germany might be cut by the end of 2023, according to initial estimates.

Leverkusen/Germany – As part of a transformation program, Covestro is reviewing its global activities to see if it fits its strategy and contributes to sustainable growth, a company spokesman said. "In this context, there will also be personnel adjustments." Duplicate structures are to be eliminated and processes simplified. According to initial estimates, it is a matter of up to 1700 jobs worldwide and more than 900 in Germany that will be cut by the end of 2023. However, the figures are "absolutely not set in stone," the spokesman said.

Covestro currently has about 18,000 employees worldwide, 6500 of them in Germany - located in Leverkusen, Dormagen and Krefeld in North Rhine-Westphalia, and Brunsbüttel and Meppen in Lower Saxony. According to the company, there will be no compulsory redundancies as part of the program to make the company "fit for the future". The job cuts are to be made, for example, through severance payments. In any case, redundancies for operational reasons are ruled out until the end of 2025 in a company agreement, and this agreement is to be extended until 2028.

Today's Covestro business used to belong to Bayer, but in 2015 it was placed on its own feet. After a weak Corona year in 2020, the Dax group's business picked up recently. In the second half of 2021, Covestro posted a profit of 1000 million dollars on sales of 9 billion dollars, compared with a small loss in the prior-year period (minus 38 million dollars).

Covestro's plastics are used in numerous products - the soft foams in mattresses, car seats and sofas, for example, and the rigid foams as insulating material in refrigerators and freezers as well as in house facades. Other substances - known as polycarbonates - are used for car headlights and cell phone or laptop housings. Coatings, for which Covestro supplies the basic materials, are used to make cars and furniture scratch-resistant.

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