LEVERKEUSEN, Germany—Global materials firm Covestro A.G. plans to cut approximately 1,700 jobs by the end of 2023.
In a statement, officials with Covestro in Leverkeusen said the cuts are part of the firm's Sustainable Future strategy "to become the best of who we are and create a strong basis for long-term development."
Covestro began implementing this strategy on July 1 when it introduced a new group structure. Officials said that, as the next step, the firm "will make further optimizations and adjustments" by the end of 2023.
"We are currently examining all our activities worldwide to determine whether they fit with our strategy and vision and to what extent they contribute to sustainable growth," they added.
"As a result of our wider transformation, there will also be personnel adjustments. In a first step, a savings potential of around 1,700 jobs has been identified across the group.
"Now the detail planning will begin and we are working to validate this number. We will work closely with employee representatives to ensure that we are carefully and responsibly implementing measures."
Officials said that once an internal analysis has been completed and an agreement has been reached with employee representatives, the firm will be able to share more information.
That number of cuts would represent about 10 percent of Covestro's global work force. The firm was spun off from Bayer AG in 2015.
Covestro posted sales of $14.7 billion in its 2019 fiscal year. The firm is a global supplier of polycarbonate resins and films, thermoplastic polyurethane, PU materials and foams and other specialty chemicals and materials.
Covestro's per-share stock price closed near $57.30 on the XETRA exchange on Sept. 3, up almost 11 percent so far in 2021.