High energy prices and the downturn in the economy prompted BASF to announce austerity measures last year. Now comes the consequence: job cuts.
The world’s largest chemical company BASF wants to cut 2,600 jobs worldwide. Around two-thirds of this is in Germany, reports the Dax group. BASF announced an austerity program last year because of skyrocketing energy costs in Europe and the slowdown in the economy. The company wants to save 500 million euros a year outside of production from 2024, half of which is to be realized at the main plant in Ludwigshafen. The focal points of the cost savings are service, corporate and research areas as well as the corporate headquarters.
“The competitiveness of the European region is increasingly suffering from over-regulation,” said company boss Martin Brudermüller, according to the announcement. It also suffers more and more from slow and bureaucratic approval procedures and above all from high costs for most production factors. All of this has slowed market growth in Europe compared to other regions for many years. In addition, high energy prices are now having a negative impact on profitability and competitiveness in Europe.
From the end of 2026, the adjustment in Ludwigshafen would probably result in fixed costs being reduced by more than 200 million euros annually, BASF announced. In addition to the cost-cutting program, BASF is also taking structural measures. In this way, the main plant in Ludwigshafen should be better prepared for the increasingly fierce competition in the long term. Among other things, one of the two ammonia plants and a TDI plant as well as plants for certain precursors are to be closed there.