ZURICH (Reuters) – Clariant AG plans to cut about 1,000 jobs as it slims down amid a series of divestments, the Swiss speciality chemicals company said on Wednesday.
“The rightsizing programme foresees a reduction of approximately 1,000 positions in service and regional structures. Approximately one-third of the reductions will be included in the divestment transfers,” it said, adding it would book a provision of around 70 million Swiss francs ($76.9 million) in the fourth quarter for the programme.
The reductions will extend over two years and will include departures attributable to natural fluctuation, Clariant said.
A previously announced cost-cutting programme aims to reduce around 600 positions at continuing operations and generate 50 million Swiss francs in savings by the end of 2021.
“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 speciality 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,” Chairman Hariolf Kottmann said.
Clariant continues to emphasise organic and inorganic growth to drive its portfolio upgrade, it added.
Reporting by Michael Shields; editing by Thomas Seythal and Uttaresh.V