DSM adjusts organizational model
(Thomson Reuters ONE) -
Royal DSM, the global Life Sciences and Materials Sciences company, today
announces adjustments to its organizational and operating model. Following
recent portfolio changes, these adjustments aim to create a more agile, focused
and cost efficient organization, with a stronger business and market focus and
globally leveraged support functions.
These changes will result in structural savings of ?125-150 million to be fully
achieved by the end of 2017.
DSM will also strengthen its management structure by establishing an Executive
Committee, enabling faster strategic alignment and operational execution.
In addition to the changes above, DSM is developing a business (growth)
improvement and efficiency program for the Nutrition business that will be
communicated at the Capital Markets Day on 4 November 2015.
Feike Sijbesma, CEO/Chairman of the Managing Board, Royal DSM commented: "In an
increasingly global and fast-paced business environment we need to adapt our
organizational and operating model to service our customers even better. With
the adjustments announced today, we become more agile, focused and cost-
efficient. Businesses fully focus on growth, while at the same time we become
more competitive by leveraging our global support functions."
Global Support functions
The support functions will be globally leveraged across DSM to capture scale-
benefits and deliver high-quality professional support at lower costs, among
others via further standardization of processes, delayering, and elimination of
duplications, resulting in a more efficient pooling of resources with clearer
accountability for performance. This will lead to a reduction in size of the
support functions, also in view of the transfer into partnerships of the Pharma,
Polymer Intermediates and Composite Resins businesses.
This new organizational model will apply to Finance, HR, Legal, IT, Business
Services, Indirect Sourcing, Communications and Corporate departments as well as
the Regional centers. In addition, DSM will implement efficiency measures in its
major R&D centers globally.
The DSM business groups remain the cornerstones of the company and their focus
will be on the primary functions of the company: Innovation and R&D, Direct
Sourcing, Manufacturing & Operations and Marketing & Sales. The optimization of
the support functions will enable the business groups to increase their business
and market focus and operate in today's business environment with greater
agility.
The above initiatives will result in a reduction in headcount of 900-1100 FTEs,
of which approximately half in the Netherlands and to be fully implemented by
the end of 2017.
The structural savings from the reduced headcount and lower spend are estimated
at ?125-150 million compared to 2014, to be fully achieved by end of 2017. One-
off restructuring charges, including severance costs, are estimated at ?150-175
million before tax.
Other efficiency programs
More information on the business (growth) improvement and efficiency program for
Nutrition will follow at the Capital Markets Day on 4 November 2015, at which
moment we will also communicate our strategy and goals for the years to come.
Executive Committee
DSM will strengthen its management structure by establishing an Executive
Committee, enabling faster strategic alignment and operational execution by
increasing focus on the development of the business, innovation and people. The
members of the Executive Committee will be the Managing Board members Feike
Sijbesma (CEO/Chairman), Geraldine Matchett (CFO), Stephan Tanda (Life Sciences)
and Dimitri de Vreeze (Materials Sciences), as well as Chris Goppelsroeder
(Nutritional Products), Philip Eykerman (Strategy and M&A), Rob van Leen (R&D
and Innovation) and Peter Vrijsen (Human Resources).
The statutory responsibilities of the Managing Board remain unchanged.
Additional information
Today DSM will hold a conference call for the media from 09.00 AM to 09.30 AM
CET. Details on how to access these calls can be found on the DSM
website, www.dsm.com. A recording of the call will be made available via the DSM
website.
DSM - Bright Science. Brighter Living.(TM)
Royal DSM is a global science-based company active in health, nutrition and
materials. By connecting its unique competences in Life Sciences and Materials
Sciences DSM is driving economic prosperity, environmental progress and social
advances to create sustainable value for all stakeholders simultaneously. DSM
delivers innovative solutions that nourish, protect and improve performance in
global markets such as food and dietary supplements, personal care, feed,
medical devices, automotive, paints, electrical and electronics, life
protection, alternative energy and bio-based materials. DSM and its associated
companies deliver annual net sales of about ?10 billion with approximately
25,000 employees. The company is listed on Euronext Amsterdam. More information
can be found at www.dsm.com.
Or find us on:
For more information:
DSM Corporate Communications DSM Investor Relations
Herman Betten Dave Huizing
tel. +31 (0) 45 5782017 tel. +31 (0) 45 5782864
e-mail media.contacts(at)dsm.com e-mail investor.relations(at)dsm.com
Press release-pdf:
http://hugin.info/130663/R/1947280/707059.pdf
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originality of the information contained therein.
Source: DSM N.V. via GlobeNewswire
[HUG#1947280]
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Datum: 25.08.2015 - 07:15 Uhr
Sprache: Deutsch
News-ID 415599
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