March 4 Reuters German chemicals group Evonik Industries EVKn.DE, opens new tab said on Monday it expected no signs of a recovery in 2024 and announced up to 2,000 job cuts worldwide by 2026 in a bid to cut costs.

The job cuts are expected to reduce costs by 400 million euros 433 million annually, the company said, adding that the majority of the cuts some 1,500 would be in Germany.

Evonik, whose products are used in items from animal feed and diapers to PfizerBioNTech39;s COVID19 vaccine, expects 2024 adjusted earnings before interest, taxes, depreciation and amortisation EBITDA in the range of 1.7 billion to 2.0 billion euros 1.84 billion 2.17 billion.

This compares with a 2023 result of 1.66 billion euros versus 1.7 billion expected by analysts.

The 2024 guidance is close to consensus and should reassure investors, JP Morgan said in a note.

What we are currently experiencing are not cyclical fluctuations, but massive, consequential changes of our economic environment, CEO Christian Kullmann said in a statement.

Chemical companies have been under pressure for more than one year as they were forced to reduce inventories on lower demand from their industrial clients.

The group will propose an annual dividend of 1.17 euros per share, unchanged from the last year.

Its 2023 sales fell 17 to 15.3 billion euros.

Sales at its performance materials division, which accounted for around 13 of the total, fell by 22 to 2.55 billion euros after the company sold a…