The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture Of Chemicals And Pharamceuticals Manufacture Of Chemicals And Chemical Products 20.17 - Manufacture of synthetic rubber in primary forms
900 jobs Number of planned job losses
Announcement Date
25 October 2018
Employment effect (start)
1 November 2018
Foreseen end date
1 January 2021
Description
The German plastic and chemical company Covestro has announced a restructuring that will lead to cut 900 jobs globally by 2021 as part of a company-wide cost savings programme. According its Chief Financial Officer, Covestro 'is seeing increasingly challenging economic conditions, and also experienced limited product availability in Europe and Asia in the past quarter'. The job cuts mainly focus on administrative and support positions. The job cuts represent about 5.5% of Covestro's global work force of 16,200 employees. Out of the total 900 job cuts, 400 will take place in Germany. According to management, the job cuts are to be carried out via 'socially responsible solutions', such as natural departure, internal reemployment, and early retirement schemes which have already been agreed with the works council in Germany.
Covestro was created in fall 2015 by the former mother company Bayer, which now holds only about 7% of its capital.
Sources
Citation
Eurofound (2018), Covestro, Internal restructuring in World, factsheet number 95726, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/95726.
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