Evonik’s latest layoffs are tied to discontinuing production of keto acids in Hanau, Germany, by the end of next year. Earlier this year, news broke the company is also cutting up to 2,000 employees globally by 2026.
A little over six months after news hit that Evonik would cut up to 2,000 employees, a fresh round of layoffs is on the way at the Germany-based specialty chemicals company and contract manufacturer. Evonik announced Oct. 11 that due to discontinued production of keto acids in Hanau, Germany, it will let go about 260 people by the end of 2025.
In March, Reuters reported Evonik will cut as many as 2,000 jobs from its global workforce by 2026, representing 32% of its workforce at that time. An Evonik spokesperson told Fierce Pharma the latest layoffs are not part of that workforce reduction.
In addition to the Hanau cuts, the company is also evaluating strategic options such as partnerships or divestment for its keto and pharma amino acid production sites in Ham, France, and Wuming, China, according to the Oct. 11 announcement. Evonik does not plan to close those sites, noting they have “outstanding potential.” The company stated its keto and pharma amino acid business generate an annual average revenue of about 100 million euros ($109 million).
The planned and potential changes are tied to Evonik transforming its healthcare business into a systems solutions provider and growing its core areas of expertise, according to the announcement. It will focus on areas including complex and highly potent active pharmaceutical ingredients, oral and injectable drug delivery, precision biosolutions such as lipids for mRNA and gene delivery and cell culture ingredients.
“I am confident our new chapter will focus our Health Care business, and empower our customers to pioneer innovation,” said Thomas Wessel, chief human resources officer and labor relations director, in the announcement.
