Following recent portfolio changes, Royal DSM announced adjustments to its organizational and operating model. These changes will result in structural savings of €125–150 million compared to 2014, to be fully achieved by the end of 2017.
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. Efficiency measures will be implemented in DSM’s major R&D centers globally.
These initiatives will result in a reduction in headcount of 900–1100 FTEs, of which approximately half in the Netherlands.
DSM will also strengthen its management structure by establishing an Executive Committee, enabling faster strategic alignment and operational execution. 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.
In addition, 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.
- Royal DSM, Heerlen, The Netherlands