The world’s largest chemical concern BASF will cut 2,600 jobs globally. About two-thirds of them will be in Germany, the company reported, quoted by the world media.
In 2022, BASF announced an austerity program due to the sharp rise in energy costs in Europe and the economic slowdown, Handelsblatt writes.
The company plans to save €500 million a year outside production from 2024, half of which will be realized at its main plant in Ludwigshafen. About 39,000 out of a total of 111,500 employees of the concern work there.
The focus of the savings will be on the areas of services, corporate and research activities, as well as on the headquarters of the company.
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In addition to the cost-cutting program, the German company is also taking structural measures. Their aim is to make the main plant in Ludwigshafen better prepared for the increasing competition in the long term.
Against this background, one of the two ammonia plants, as well as plants for some preliminary products and raw materials, will be closed.
BASF forecast lower operating profit this year, expecting adjusted earnings before interest and tax to €5.4 billion, after the company’s 2022 profit fell 12% to €6.9 billion.
High gas prices risk thousands of jobs and investments moving elsewhere. A recent survey by the German chemical association VCI showed that almost half of chemical companies plan to reduce their investments in Germany in 2023 due to high energy costs.
The largest chemical concern in the world is in trouble
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