Advance materials and specialty chemicals company Solvay SA, Brussels, has launched a new step in its transformation process that will cut some 600 jobs, with most of those in back-office functions in France (160), Portugal (90), and Brazil (80). The company said natural turnover, voluntary leave, and internal repositioning will help mitigate the impact of the job cuts. Solvay has some 24,500 employees in 61 countries.
“This new step in Solvay’s transformation centers on better serving our customers,” said CEO Jean-Pierre Clamadieu. “Over the past six years we built a business portfolio to generate superior and sustainable growth. Now we need to follow through and drastically simplify our organization and processes, as well as align all our resources. This will allow Solvay to provide differentiated experiences for customers and maximize value for the group.”
Solvay is also planning stronger research and innovation (R&I) capabilities at Lyon in France and an expansion in Brussels. In Belgium, the expansion will coincide with plans to revamp the Brussels headquarters. Solvay plans to relocate all of its Aubervilliers functions and nearly all of its Paris activities in France to Lyon and to a lesser extent to Brussels, concentrating R&I into two centers. Some 500 employees would be transferred to Lyon and Brussels over four years.
An indication of the consequences of the transformation on Solvay’s financial performance over the next three years will be provided with Solvay’s earnings release for the first quarter.
Clamadieu is credited with Solvay’s build-up over the past five years, according to Bloomberg, which notes that he will be undertaking Solvay’s largest workforce reorganization as he leaves the company to become the chairman of French utility Engie SA in May. Among recent Solvay deals were the $6.9 billion acquisition of U.S. composites maker Cytec Industries in 2015, and this year’s divestment of a plastics business to BASF SE for $1.6 billion.