Clariant Chief Pushing Ahead With Cutbacks Eyeing 2014 Payback

Clariant AG (CLN) will begin making cuts in support services such as administration and human resources in the coming months, Chief Executive Officer Hariolf Kottmann said in a letter to employees.

“We will shortly begin implementing specific projects, which will be directed by the Executive Committee,” Kottmann wrote in the letter, saying that Clariant will see the benefits of the measures in 2014.

“We will only succeed in avoiding remnant costs and reducing corporate costs if we intensify our efforts,” the CEO added.

Clariant is nearing the end of a revamp which will see it exit five commodity chemicals units making up one-fifth of sales to focus on more profitable care chemicals and catalyst businesses. In a next phase, Kottmann is turning to finetuning and lowering costs in areas such as human resources to reflect the scaled back size of the company.

Kottmann also pledged to cut costs such as fees paid to advisers associated with restructuring.

Clariant spokesman Kai Rolker declined to comment on how the corporate and remnant cost cuts will affect headcount. The measures do not constitute a corporate restructuring program and Clariant has no announcement about job cuts planned, he added.

To contact the reporter on this story: Patrick Winters in Zurich at pwinters3@bloomberg.net

To contact the editor responsible for this story: Simon Thiel at sthiel1@bloomberg.net

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