News
Resonac plans to cut approximately two-thirds of staff at German graphite electrode facility
Tuesday, December 2, 2025 at 06:40 AM
Resonac announced a significant personnel reduction affecting about two-thirds of the workforce at its German facility for the graphite electrode business. The company attributes this operational change to the deterioration of the business environment.
Context
In a move to address a challenging market, Resonac is significantly downsizing its German graphite electrode business. The company will cut 41 of the 65 employees at its Resonac Graphite Germany GmbH subsidiary, a reduction of approximately two-thirds of the site's workforce. The layoffs, which were agreed upon with the works council on November 10, 2025, will be implemented sequentially starting in fiscal year 2026. Resonac attributes the decision to a severe business environment marked by sluggish demand and aggressive low-price competition.
This site-specific action is part of a broader, global rationalization of Resonac's graphite electrode division. The company plans to reduce the division's total headcount by about 40%, or approximately 700 employees, compared to the end of fiscal year 2024. For investors, this aggressive cost-cutting is significant as it aims to achieve annual fixed cost savings of around JPY 11.7 billion. The move signals a strategic pivot, freeing up capital from a struggling legacy business to be potentially reallocated to high-growth areas, including Resonac's critical role in the semiconductor and AI materials supply chain.
Sources (8)
Resonac to Cut Workforce in Graphite Electrode BusinessGraphite India: How will Resonac's plant closures impact ...Knowledge Library - | Growth AdvisoryResonac : Notice Regarding Rationalization Measures for ...Resonac Graphite: Leading manufacturer of graphite electrodesFY2024Annual Report 2019News from the leading manufacturer of graphite electrodes
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