German specialty chemical firm Evonik AG will cut up to 1,000 jobs globally by 2020 in a bid to reduce costs by 200 million euros ($231.8 million).
The decision is part of a target set by Evonik last year to reduce administrative and selling expenses.
A June 27 company statement said the jobs will be in administration and sales positions and will help it towards achieving a “performance-oriented” corporate culture and a “healthy cost structure.”
The first 50 million euros ($57.9 million) of the cuts will take place this year.
According to Christian Kullmann, chairman of Evonik's board of management, the move is part of Evonik's strategy to become “best-in-class specialty chemicals company.”
“To get there we need three things: a balanced portfolio, leading innovative capability, and a new, performance-oriented corporate culture,” he said in a news release.
The company said it had conducted a detailed analysis of all administrative support functions as part of the streamlining process, which it stressed will be implemented in “a socially acceptable manner.”
The Essen, Germany-based company has agreed not to dismiss employees for "business-related issue" in Germany until mid-2023.
Evonik will also be using natural fluctuation to reduce the number of jobs in administration and sales worldwide. Vacant positions will be examined to see whether it is necessary to fill them.