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WACKER to Drive Implementation of Its “Shape the Future” Efficiency Program Forward: 1200 job cutbacks

FRAMEWORK AGREEMENTS SIGNED WITH EMPLOYEE COUNCIL
SOME 1,200 JOB CUTS MAINLY IN ADMINISTRATIVE DEPARTMENTS AND NON-OPERATIONAL FUNCTIONS OF THE BUSINESS DIVISIONS BY THE END OF 2022
STAFF REDUCTION IN GERMANY TO BE IMPLEMENTED IN A SOCIALLY RESPONSIBLE MANNER WITH NO FORCED LAYOFFS
ANNUAL SAVINGS TARGET OF € 250 MILLION FROM THE END OF 2022 CONFIRMED

Wacker Chemie AG is moving forward with “Shape the Future,” its efficiency program initiated last November. The Munich-based chemical company announced today that company management and employee representatives have agreed on a framework for the planned job cutbacks. In this regard, some 1,000 jobs in total will go in Germany by the end of 2022. The job cuts will affect mainly WACKER’s administrative departments and the indirect and non-operational functions of its business divisions. In addition, 200 jobs will be cut back at international sites.

The layoffs in Germany are to be implemented exclusively with socially responsible and voluntary measures. These include retirement, phased retirement or severance agreements. The recently reached agreement excludes forced layoffs.

Moreover, it was decided that qualified trainees will continue to be taken over. The company is thereby making an important contribution toward offering young people an attractive career perspective after they have completed their training. This policy also secures WACKER’s access to well-qualified young professionals in future.

The company confirmed that by reducing non-personnel costs and the scope of internal services, and slimming down the organization, it will achieve its annual savings goal of € 250 million by the end of 2022. Half the total amount is accounted for by non-personnel costs and the other half by personnel costs. WACKER is expecting non-personnel-cost savings of over € 50 million this year. In 2021, the amount saved is likely to exceed € 100 million. Significant savings in personnel costs are not expected before next year.

“The main purpose of “Shape the Future” is to support the company’s profitable growth by keeping WACKER’s organization aligned with customers’ needs and requirements,” said CEO Rudolf Staudigl, explaining the focus of the program. “In both our polysilicon business and our chemical divisions, we are preparing ourselves for a harsher competitive environment. We not only want to achieve significant cost-savings, but also to decisively strengthen WACKER for tomorrow’s challenges and secure a long-term competitive-edge,” added Staudigl.

“With the agreements we have just concluded, we have created the framework that will enable us to go ahead quickly with the implementation phase of the planned organizational changes. Together with the employee council, we will now work out the personnel measures in detail,” said Executive Board member Christian Hartel. “We are very satisfied that we have succeeded in achieving our goals with good and fair solutions with this agreement,” emphasized Hartel.

Source: WACKER

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