A realignment scheme initiated by new Lanxess CEO Matthias Zachert last spring could see the chemical producer's 16,900-strong workforce cut by 7%, a German newspaper has reported.

The company has declined to comment before it publishes third-quarter results on Nov. 6.

Citing company sources, the daily Rheinische Post said it had learned that 1,200 jobs were on the chopping block as the world's largest synthetic rubber manufacturer deals with a global oversupply situation. It added that Lanxess plans to offer workers voluntary redundancy packages and early retirement schemes but also will not rule out layoffs.

As part of the company's three-phase Let's Lanxess Again strategy to take hold from January 2015, the CEO said earlier that it was likely to close production facilities in reaction to weak demand for auto ties and Asian competition.

Analysts have calculated that cutbacks in this dimension could save €50-60 million in costs annually.