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Management DSM to Adjust Organizational Model

| Editor: Dr. Jörg Kempf

Royal DSM has announced adjustments to its organizational and operating model. Following recent portfolio changes, these adjustments aim to create a more agile, focused and cost efficient organization, with a stronger business and market focus and globally leveraged support functions. The initiatives will result in a headcount reduction of more than 900 FTEs.

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Feike Sijbesma, CEO/Chairman of the Managing Board, Royal DSM: “With the adjustments we become more agile, focused and cost-efficient.”
Feike Sijbesma, CEO/Chairman of the Managing Board, Royal DSM: “With the adjustments we become more agile, focused and cost-efficient.”
(Picture: DSM)

Heerlen/The Netherlands – According to DSM, these changes will result in structural savings of €125–150 million to be fully achieved by the end of 2017.

The global Life Sciences and Materials Sciences company will also strengthen its management structure by establishing an Executive Committee, enabling faster strategic alignment and operational execution. In addition, DSM is developing a business (growth) improvement and efficiency program for the Nutrition business that will be communicated at the Capital Markets Day on 4 November 2015.

Feike Sijbesma, CEO/Chairman of the Managing Board, Royal DSM commented: “In an increasingly global and fast-paced business environment we need to adapt our organizational and operating model to service our customers even better. With the adjustments announced today, we become more agile, focused and cost-efficient. Businesses fully focus on growth, while at the same time we become more competitive by leveraging our global support functions.”

Global Support Functions

The support functions will be globally leveraged across DSM to capture scale-benefits and deliver high-quality professional support at lower costs, among others via further standardization of processes, delayering, and elimination of duplications, resulting in a more efficient pooling of resources with clearer accountability for performance. This will lead to a reduction in size of the support functions, also in view of the transfer into partnerships of the Pharma, Polymer Intermediates and Composite Resins businesses.

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