Downsizing workforce is “necessary”, Lanxess chairman says
06/11/2014
The first of the three phases, aimed at improving the competitiveness of the business, involves reducing its workforce by around 1,000 around the world before the end of 2016. This has included offering around 500 workers in Germany terms to leave, with the company offering severance payments, advice and support in finding new jobs outside Lanxess. This offer will expire before the end of 2014.
Lanxess released a statement on November 6 to say around half of the employees affected in Germany had already agreed terms, but it said it could not rule out compulsory redundancy for some members of staff if too few come forward before the deadline. It said the affected jobs will be mainly in the administrative and service units, marketing and sales, as well as in research and development.
The director in charge of labour relations, Rainier van Roessel, described the programme of job reductions as tough, but said Lanxess had reached a fair agreement with employee representatives. At the moment, the company has around 16,700 employees in 29 countries.
At the beginning of November 2014, Lanxess initiated the second phase of the realignment programme, which is aimed at increasing its operational competitiveness. This phase focuses on the optimisation of sales and supply chains and of production processes and facilities. It currently has 52 production sites around the world. Lanxess will put in place measures to optimise these in the course of 2015 and 2016.
The third phase of the programme, which is aimed at improving the competitiveness of the business portfolio, will focus on “horizontal and vertical co-operations in the rubber business”. This phase is also to be implemented in 2015 and 2016.
“The realignment lays the foundation for Lanxess to return to sustainable growth in the mid-term,” said Lanxess chairman, Matthias Zachert, in the November 6 statement. “Downsizing the workforce is a necessary measure to improve our competitiveness. As of 2016, we will fully benefit from the savings made. We can then start thinking cautiously about growth again, with the focus on our advanced intermediates and performance chemicals segments.”
Share this story:
