Clariant, a sustainable and innovative specialty chemical company, has announced its plans to cut 1,000 positions in service and regional structures as part of its rightsizing program.
“The Group plans to rightsize regional organizations and service units in order to avoid remnant cost, thereby reducing complexity and increasing agility post the expiration of transitory service agreements following the closing of the divestitures,” the company said in its press release.
With the divestments of Healthcare Packaging in October 2019 and Masterbatches in July 2020 as well as the anticipated divestment of Pigments, Clariant said it is transforming itself towards a higher-value specialty portfolio focusing on its core Business Areas: Care Chemicals, Catalysis and Natural Resources.
“Approximately one third of the reductions will be included in the divestment transfers. After a careful review of the scope of all measures under consideration, Clariant has decided to make a provision in the magnitude of CHF 70 million in discontinued operations in the fourth quarter of 2020 for the rightsizing program,” the company added.
With the rightsizing program Clariant will preserve itself from remnant cost from the recent and impending divestments. The previously announced efficiency program is in full implementation to reduce approx. 600 positions and realize CHF 50 million cost base savings in the continuing business till the end of 2021.
“As we progress towards completing the next of the non-core business disposals, we must utilize this opportunity to further strengthen Clariant’s core for a successful future. By avoiding remnant cost and consequently reducing complexity, putting an even stronger focus on innovation, sustainability and operational excellence, we put our company’s high value specialty businesses in a position to operate in an even more focused and agile manner. This will help us deliver above-market growth, higher profitability and stronger cash generation,” said Hariolf Kottmann, Executive Chairman ad interim of Clariant.
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