Solvay Announces Plan to Simplify the Organization
Cutting 600 Jobs
In a move to to simplify its organization that needs to be adapted to its portfolio which is now strongly focused on high-performance materials and tailored solutions, as well as to its changing customer base Solvay SA, Brussels, Belgium, announces a transformation plan that is putting its customers at the core of its organization to enhance its long-term growth as an advanced materials and specialty chemicals company.
The transformation plan includes:
- A more agile organization to support customer needs: Solvay will simplify processes and tasks to focus teams on customers, allowing them to faster anticipate and better respond to their demands. Solvay will keep its decentralized model whereby its Global Business Units are responsible for developing their own strategic plans and implement them with the support of the Group.
- Stronger Research & Innovation capabilities in Lyon, France, and an expanded R&I scope in Brussels, Belgium: In France, Solvay plans to upgrade its largest global research site in Lyon to a center for advanced chemistry mid the region’s dynamic innovation ecosystem. In Belgium, the expansion of R&I in advanced materials science would coincide with plans to revamp the Brussels headquarters, fostering collaboration among employees and with partners. The concentration of the R&I and support activities would involve the transfer to Lyon and Brussels, over four years, of about 500 employees who can rely on comprehensive support from the Group to help them relocate.
- Relocation from Aubervilliers and Paris to Lyon and Brussels: Solvay plans to relocate its Aubervilliers and nearly all of its Paris activities to Lyon and to a lesser extent to Brussels, concentrating R&I into these centers. The Group already launched the relevant information/consultation procedures with employee representatives. These procedures should be completed at the end of June. The Group is committed to supporting employees throughout this transformation while limiting job losses as much as possible.
The simplification of the organization should lead to about 600 net redundancies, mainly in functional activities, including 160 in France, 90 in Portugal and 80 in Brazil. Natural turnover, voluntary leave and internal repositioning will help mitigate these impacts.
“This new step in Solvay’s transformation centers on better serving our customers. 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,” said Jean-Pierre Clamadieu, CEO of Solvay.
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