Sika to Lay Off Up to 1,500 Employees Globally for Structural Adjustments in Persistently Weak Markets Like China

On October 24, 2024, construction chemicals manufacturer Sika announced in its latest financial performance report that the company is undergoing structural adjustments in persistently weak markets such as China, including the potential layoffs of up to 1,500 employees, approximately 4.3% of the company’s global workforce. Sika stated that these adjustments are an important part of its investment and efficiency program "Fast Forward," and are expected to result in one-time costs of 80 million to 100 million Swiss francs by 2025.

Sika stated that the plan also includes an investment of 120 to 150 million Swiss francs and is expected to achieve total cost savings of 150 to 200 million Swiss francs per year, with all effects anticipated to be realized by 2028.

Sika announced that its sales for the first nine months of 2025 fell by 3.8% year-on-year to 8.58 billion Swiss francs, primarily due to a deflationary market environment in the Chinese construction industry, which led to a 3.9% decline in sales in the Asia-Pacific region (calculated in local currency).

Thomas Hasler, CEO of Sika, stated: "In China, our strong market influence and commitment to innovation will enable us to fully leverage the long-term opportunities presented by the increasingly mature construction market, the leading electric vehicle industry, and the growing potential markets."

In the first nine months of 2025, Sika's sales in the Europe, Middle East, and Africa region (measured in local currency) grew by 2.1%, as the construction market in the region showed a slight recovery during the reporting period. In the Americas, Sika's sales (measured in local currency) increased by 2.9%.

Sika stated, "Although the start of this fiscal year has been strong, U.S. trade policy measures have introduced some market uncertainty and slowed growth momentum. Subsequently, growth in the U.S. and Mexico has slowed, while overall performance in Latin America remains robust."

Sika reported that net profit for the first nine months of 2025 fell by 5.6% year-on-year to 870.9 million Swiss francs. The company's earnings before interest, taxes, depreciation, and amortization decreased by 3.3% to 1.64 billion Swiss francs, due to a "significant" foreign exchange impact.

Sika has confirmed its full-year sales guidance for 2025, expecting a "slight" increase in sales in local currency, despite the overall contraction and challenging situation in the Chinese market.

However, the company stated that after deducting one-time costs associated with investment and efficiency projects, its full-year EBITDA margin is currently expected to be around 19%. Sika noted that excluding these costs, the EBITDA margin would be between 19.5% and 19.8%, consistent with the company's previous expectations.

Sika has also confirmed its mid-term target of achieving an EBITDA margin of 20% to 23% by 2028. At the same time, the company has adjusted its mid-term growth guidance to a local currency growth of 3% to 6%, down from the previous expectation of 6% to 9%, to reflect the "revision of market growth expectations for the remaining three years of the strategic period."