Following Wacker Chemie’s (Wacker) reported loss of US$680 million in its preliminary figures for 2019, the international chemical company has planned a restructuring programme called “Shape the Future,” which is aimed at saving nearly US$270 million each year and will reduce material costs and in-house services to create a leaner company structure. Unfortunately, Wacker will also cut more than 1,000 jobs by the end of 2022.
The pending job cuts will affect more than 80% of the company’s Munich-based business divisions, including administrative departments and non-operational functions. The German facilities employ about 10,000 of Wacker’s 14,500 employees. Wacker officials assured they will work with employee representatives to reduce the work force through retirement, semi-retirement, and severance agreements; if successful, the company can avoid compulsory layoffs.
“We are confident of finding good and fair solutions (constructive negotiations) to achieve these objectives,” said Christian Hartel, an Executive board member.
As the first outline of the restructuring plan has been presented to employees for discussion/evaluation,CEO Rudolf Staudigl said Wacker aims to adequately prepare itself for future challenges and secure a long-term competitive edge, aside from cost-savings. “Shape the Future is a comprehensive approach – we are preparing for a harsher competitive environment, both in our polysilicon business and at our chemical divisions. ”Low prices for solar-grade polysilicon and standard silicones accounted for a revenue fall ofUS$5.32 billion recently.