Restructuring Upgrade! Chemical Giant Plans Global 10% Layoffs!

Recently, Huntsman released its Q2 and half-year performance reports. Revenue for the first half of 2025 was $2.868 billion, down 6% year-over-year; net loss attributable to Huntsman was $163 million, compared to a net loss of $15 million in the same period last year; adjusted EBITDA was $146 million, down 31.1% year-over-year. 

For Q2 2025 alone, revenue was $1.458 billion, down 7.4% year-over-year; net loss attributable to Huntsman was $158 million, compared to a net income of $22 million in the same period last year; adjusted EBITDA was $74 million, down 43.5% year-over-year.

Chairman, President, and CEO Peter R. Huntsman said: “Due to reduced global construction and industrial activity pressuring our volumes, Q2 performance was generally in line with expectations. The usual seasonal increase in construction demand we see in Q2 was weaker in 2025, and we expect this trend to continue into Q3 without significant change. 

Given current returns, we have taken decisive cost-cutting and restructuring measures, including closing the maleic anhydride plant in Moers, Germany, as well as other downstream plants in Europe and North America. The restructuring program we launched at the end of 2024 will further expand in 2025, ultimately reducing our global workforce by nearly 10%, with the largest layoffs in Europe. 

Through cash management activities, we generated positive cash flow in Q2. As we have said before, while steering the company through the current environment, maintaining the balance sheet remains our top priority alongside focusing on cash generation.”

In February this year, Huntsman’s CEO stated: High energy costs, heavy regulatory burdens, and overcapacity have severely impacted the European industry situation. We will not stand by and wait for the market to improve; we will continue actively cutting costs, including announcing layoffs in the polyurethane division. 

It is understood that Huntsman operates more than 60 manufacturing, R&D, and operational facilities across about 25 countries/regions, with approximately 6,300 employees. This round of layoffs may affect around 600 people. Huntsman's continuing operations revenue in 2024 was about $6 billion.

Poor Revenue Across All Businesses

From Huntsman’s business performance, revenue and adjusted EBITDA for both the first half and Q2 of 2025 declined year-over-year.

Polyurethane Business

Revenue fell 4% year-over-year in the first half of 2025 and 7% in Q2, mainly due to lower average selling prices and volumes. The MDI average price declined primarily due to poor supply-demand dynamics. Volume decreased mainly because of weaker demand in construction-related markets and planned maintenance at the Rotterdam, Netherlands manufacturing plant in Q2 2025. Adjusted EBITDA for Q2 fell 61% year-over-year, mainly due to lower average prices, reduced volumes, lower inventories, and decreased equity income from minority joint ventures in China, partially offset by lower raw material and fixed costs.

Performance Products Business

Revenue declined 11% in the first half and 10% in Q2 2025 year-over-year, primarily due to volume decreases. Average selling prices remained relatively stable, as price declines were mostly offset by a favorable sales mix. Volume declined due to reduced plant utilization in Moers, Germany and weak market conditions, partially offset by market share gains. Adjusted EBITDA for Q2 fell 30% year-over-year, mainly due to lower sales revenue and inventory reductions, partially offset by decreases in variable direct costs and other fixed costs.

Advanced Materials Business:025 fell 5% year-over-year. Adjusted EBITDA for Q2 declined 13% year-over-year, mainly due to lower average selling prices and volumes. The volume decrease was driven primarily by weaker demand in the coatings and aerospace markets.