Investor Alert

Nov. 25, 2020, 1:56 a.m. EST

Clariant to cut 1,000 jobs amid transformation

By Cecilia Butini

Clariant AG said Wednesday that it will cut about 1,000 jobs in its service and regional structures as part of a transformation and rightsizing program.

The Swiss chemical company also said that it is making a provision of 70 million Swiss francs ($76.8 million) for discontinued operations in the fourth quarter to backup the rightsizing program.

The decision to transform and rightsize the organization comes in the wake of the divestment of the Healthcare Packaging and Masterbatches businesses in 2019 and July 2020, respectively.

"With the rightsizing program Clariant will preserve itself from remnant cost from the recent and impending divestments," the company said.

The measures will extend over a maximum of two years, Clariant said.

The company's previously announced efficiency program is in full implementation and will reduce about 600 positions, according to Clariant. It will also realize CHF50 million in cost base savings in the continuing business until the end of 2021, the company said.

The organizational transformation will allow Clariant to focus on its core business areas of care chemicals, catalysis and natural resources, it said.

Write to Cecilia Butini at cecilia.butini@wsj.com

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