The German company Merck from Darmstadt faces another challenge as business slows down. In view of this, the DAX-listed company announces that it will cut up to 230 jobs in its electronics division, of which up to 100 positions will be in Germany. A spokeswoman announced on Friday that a corresponding agreement had been reached with the works council. The company is committed to amicable and socially responsible solutions and aims to internally reassign as many employees as possible.

It was already announced in November of last year that Merck intends to cut costs in its electronics division by up to 90 million euros. This division produces, among other things, semiconductor materials for electronic devices and liquid crystals for smartphones and TV screens. The product portfolio also includes pigments for the automotive and cosmetics industries. However, due to the ongoing slump in demand in the electronics industry, the downturn is lasting longer than Merck had anticipated. There have also been setbacks on other levels recently, such as in the pharmaceutical division, where there were problems with promising products. The special economic situation associated with COVID-19 vaccines, from which Merck had benefited in the laboratory division, is also over.

To address these challenges, Merck has already implemented two cost-saving packages. This included cutting 200 positions in the pharmaceutical division, and by the end of 2024, there will be an additional reduction of 550 jobs in central functions such as IT, procurement, human resources, and legal. Due to an employment guarantee, compulsory redundancies at the site in Darmstadt and nearby Gernsheim are excluded until the end of 2025. In Darmstadt alone, Merck employs 12,500 of the total of more than 64,000 employees worldwide.

The company is set to present the sales and profit figures for the year 2023 next Thursday. On the stock exchange, Merck's share price briefly fell by 0.38 percent to 157.20 euros on XETRA.

Despite the current challenges, Merck remains confident and is focusing on a long-term strategy to overcome economic difficulties. With the announced measures, the company will be positioned stronger for the future and hopes for a positive development in the coming fiscal year.