Chemical Giant Solvay To Cut 500 Jobs As Profits Slump

Brussels, (UrduPoint / Pakistan Point News - 24th Feb, 2021 ) :Belgian chemical giant Solvay said Wednesday it would cut 500 jobs worldwide by the end of 2022 as net profit fell 42 percent during the Covid-19 pandemic.

The company, which employs more than 23,000 people in 64 countries, announced that bottom-line net profit had nosedived from just over one billion Euros ($1.2 billion) in 2019 to 618 million euros in 2020.

It said the job cuts were part of a plan to reduce costs by 500 million euros a year by the end of 2024, up from a target of 350 million euros.

The chemical producer had already announced in 2020 that it would be shedding 350 jobs by the end of this year.

The firm saw sales fall by 10 percent as crucial areas including the civilian aviation sector ground to a halt due to restrictions imposed over the coronavirus pandemic.

"Net sales for the full year 2020 were down 10 percent organically, due to the impact from Covid on civil aero and oil and gas volumes, which were moderated by resilient demand in healthcare, consumer goods, personal care, and electronics," a statement said.

"As the crisis unfolded, we quickly adapted priorities to accelerate our cost and cash delivery, (and) demonstrated the resilience of our business," CEO Ilham Kadri said in the statement.