European chemical industry cuts jobs as the sector shrinks

Economic turmoil led to sales and profit declines at several major European chemical industry firms in the fourth quarter or all of 2023. Two big challenges for the sector are soft demand for its products and high energy prices. A number of companies, including Germany's Evonik Industries, see no near-term uplift in market conditions. Evonik says in its earnings announcement that it will respond to the "continuously challenging" market conditions with a program to cut annual costs by about 400 million euros (435 million). As part of the initiative, the firm will eliminate 2, 000 jobs, 1, 500 of which are in Germany. Many of the jobs will be management positions. The company recorded a net loss of 159 million in the fourth quarter and a 17% decrease in sales to 4. 0 billion. Evonik recorded an even bigger loss for the whole of 2023. "The general conditions will not get any easier,