Evonik to Cut 3,200 Jobs and Offload Two Units as Morgan Stanley Turns Cautious
Published on 09/22/2026 at 18:40 | Editorial boerse-global.de
Evonik is pressing ahead with a sweeping overhaul that will see 3,200 positions eliminated worldwide by 2029, with the specialty chemicals group simultaneously preparing to divest two entire business units. The announcement, made today, forms the second phase of the company's internal "Evonik Tailor Made" program, which kicks off in 2027.
Investors welcomed the news. The stock climbed 3.2% to EUR 17.98, building on a 35% advance since the start of the year. Market participants cited the planned divestments, alongside the cost-cutting targets, as the main driver behind the session's gains.
Portfolio Slimming: Oxeno and Syneqt on the Block
Under the plan, Evonik intends to shed both Oxeno and Syneqt entirely. Concrete talks with interested investors are already underway for Oxeno, while the formal sale process for Syneqt is not scheduled to begin until 2027. Together, the two units employ roughly 4,300 people.
The workforce reduction will hit Germany hardest, with 2,150 of the 3,200 affected roles located in the company's home market. Beyond personnel, Evonik is reorganizing its remaining product portfolio around strategic roles, with six large German production sites set to specialize more sharply on selected core areas. Future capital expenditure will be redirected toward higher-growth markets in Asia and the Americas, extending the group's existing efforts to align its cost base with a challenging European operating environment.
Should investors sell immediately? Or is it worth buying Evonik?
Analyst Caution Clouds the Picture
The optimism on the trading floor stands in contrast to a more sober tone among analysts. On September 15, Morgan Stanley downgraded Evonik from "Overweight" to "Equal-weight," trimming its price target from EUR 21 to EUR 18. Analyst Lisa De Neve pointed to deteriorating prospects in the high-margin animal feed business built around the amino acid methionine.
That caution is echoed elsewhere. JPMorgan had already reaffirmed its sell rating on September 11, flagging rising energy costs as a key burden weighing on European chemical production margins.
Site Closures and a Bright Spot
Evonik is responding to these shifting conditions with structural measures at home. As the company announced on September 11, two smaller sites in Hamburg and Bitterfeld are slated for closure next year, a move aimed at streamlining cost structures and making production more efficient.
Not every division is under pressure. The Advanced Technologies segment is benefiting from raw material shortages among Asian competitors, which is helping support operating utilization in selected product lines outside the traditional base chemicals business.
Guidance Raised for 2026
Despite the recent skepticism surrounding the animal feed market, Evonik can look back on a broadly recovered business year. For 2026, management now targets adjusted earnings before interest, taxes, depreciation and amortization of between EUR 2.0 billion and EUR 2.2 billion, up from a previous range of EUR 1.7 billion to EUR 2.0 billion.
With the stock up 35% year-to-date, the future trajectory of the methionine business is likely to remain squarely in the sights of market participants.
Ad
Evonik Stock: New Analysis - 22 September
Fresh Evonik information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
