Leverkusen, Germany — Covestro announced that 900 jobs will go worldwide on 25 October as part of its third-quarter earnings release. The move is part of a plan to save EUR 350 m by 2021.
In a news release, chief financial officer Thomas Toepfer said that third quarter results ‘met our expectations’, but added that his company ‘is seeing increasingly challenging economic conditions, and also experienced limited product availability in Europe and Asia in the past quarter’.
Officials listed ‘administrative areas’ as a potential category for the job cuts. The cuts represent about 5.5 % of Covestro’s global headcount of 16,200.
A company spokesman said that 400 job will go in Germany. He added that all 900 cuts are expected to be made by 2021.
In the first nine months of 2018, the company’s sales were up almost 7% to more than EUR 11.3 bn. At the same time, profit jumped almost 21% to more than EUR 1.7 bn.
In the third quarter Covestro’s earnings were flat but profit rose.
Frank Esposito wrote this story, which appeared first in Plastics News.