Evonik Job Cuts and BASF's Warning on Europe

Evonik Expands Restructuring With More Job Cuts

German chemicals giant Evonik plans to cut another 3,200 jobs as part of a wider restructuring programme. Under previously announced plans, some 2,800 jobs are to be cut by the end of 2026.

The new phase targets 2027 to 2029 and extends the Tailor Made program launched in October 2023. Evonik will discontinue its global polyester business within the Custom Solutions segment in 2027, affecting sites in Germany and Shanghai. At the end of 2025, the Essen-based company employed 31,053 people, almost 900 fewer than a year earlier.

Why 2,000 Became 6,000

Evonik first announced up to 2,000 job cuts worldwide by end-2026 after posting a net loss of €465m in 2023 as sales fell 17% to €15.3 billion. The goal was to reduce costs by 400 million euros annually, with about 1,500 cuts in Germany.

By reducing management levels from an average of ten to a maximum of six and scaling back adhesives and health care lines to focus on core businesses, the company beat Q3 core profit expectations. Management then widened the program to protect free cash flow as European demand stayed weak.

BASF's Warning on Europe's Competitiveness

BASF's message for 2026 is efficiency over growth. The company said it does not expect too much market growth in 2026 and focus in 2026 is on own efficiency improvement measures. Since 2024, BASF has reduced executive positions by 10% and employees by 3,000.

Ludwigshafen competitiveness remains under continued scrutiny as part of a broader European restructuring wave that includes Shell reviewing its chemicals business, ExxonMobil reviewing European chemical assets, and Vynova seeking buyers for Tessenderlo, Beek and Mazingarbe.

Energy Shock and China Overcapacity as Root Cause

BASF CEO has said the chemical industry is probably experiencing its most difficult period in 25 years, with expensive energy in Germany, overcapacity and competition from China. Russian gas pipeline supply which historically anchored the Verbund site cost base collapsed after the Ukraine invasion, forcing BASF to absorb sustained energy and feedstock cost pressure that US and Chinese competitors do not face.

This reduces gas demand in the Far East but adds pressure on European crackers. The German government's Chemieagenda package presented on March 26, 2026 attempts to address the gap, but underlying competitiveness remains unresolved. Industry groups argue Europe needs stronger champions, not fragmentation, as competitors from China, the US and Middle East become increasingly important.

What It Signals for European Chemicals

Evonik cutting 3,200 more jobs by 2029 and BASF warning on growth fit the same pattern as SABIC's $500 million sale of its European petrochemicals business to AEQUITA in January 2026 and Orion's Q2 2026 report of softer rubber carbon black volumes. Europe is past the opening phase of restructuring. The next phase is ownership change, specialty focus and Red Sea logistics hedges like Saudi Arabia's Jeddah and Yanbu corridor to bypass Hormuz risk.

Working Source Links:

Evonik to cut 3,200 more jobs by 2029 - https://www.reuters.com/business/evonik-cut-3200-jobs-worldwide-by-2029-it-extends-restructuring-programme-2026-06-18/

Evonik to cut 2,000 jobs by end-2026 after posting loss - https://www.personalcaremagazine.com/story/44126/evonik-to-cut-2-000-jobs-by-end-2026-after-posting-loss

Evonik Job Cuts and Exit from Polyester Business - Tailor Made program 2,800 positions - https://www.k-online.com/en/Media_News/News/Industry_News/Evonik_Job_Cuts_and_Exit_from_the_Polyester_Business_Announced

BASF CEO Focus in 2026 on own efficiency, no market growth expected - https://sundayguardianlive.com/world/brief-basf-ceo-focus-in-2026-on-our-own-efficiency-improvement-measures-capital-markets-update-154126/

Europe's petchem plants close, assets change hands - BASF Ludwigshafen competitiveness - https://www.chemorbis.com/en/free-news/Europe-s-petchem-plants-close-assets-change-hands-How-far-has-restructuring-progressed/2026/10/07/988639

BASF CEO Warns of Potential Oil Price Shock Amid Iran Conflict - https://www.chemicalprocessing.com/industrynews/news/55383061/basf-ceo-warns-of-potential-oil-price-shock-amid-iran-conflict

BASF Should Buy Evonik - Europe Needs a Chemical Champion - https://bioplasticsnews.com/2026/09/26/basf-should-buy-evonik-europe-needs-a-chemical-champion/