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🇩🇪 Germany /Economy & Trade

BASF Tightens Belt: Further Job Cuts Expected as Chemical Giant Intensifies Savings Program

From Die Zeit · () German

Translated from German and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Context piece
  • German chemical giant BASF is intensifying its cost-cutting measures with a new savings program aiming to reduce core business expenses by up to 20% by 2029.
  • The initiative, announced by CEO Markus Kamieth, will lead to further job reductions as the company seeks to optimize its operations and personnel costs.
  • BASF is grappling with low capacity utilization, particularly at its Ludwigshafen headquarters, and has already shed approximately 2,800 jobs in the region since early 2024.

Ludwigshafen, Germany – The world's largest chemical producer, BASF, is embarking on a significant cost-cutting drive, signaling a new era of austerity for the German industrial giant. CEO Markus Kamieth has unveiled an ambitious savings program designed to slash core business costs by up to 20% by 2029, a move that will inevitably result in further job losses.

This aggressive optimization strategy, described by Kamieth as a "new operating system for the company," aims to streamline operations and reduce personnel expenses, which are expected to form a substantial part of the savings. The program is not a reaction to a worsening economic climate but rather a pre-planned implementation of the company's 2024 strategy, reflecting a long-term vision for efficiency.

It is one of the largest optimization programs for BASF, a new operating system for the company.

· Markus KamiethDescribing the new savings program and its scope.

BASF's Ludwigshafen headquarters, the heart of its global operations, is particularly affected by low capacity utilization. The company has already seen around 2,800 jobs disappear in the region since the start of 2024. Despite these cuts, a site agreement ensures no compulsory redundancies in Ludwigshafen until the end of 2028, alongside significant investment in the facility. Globally, BASF's workforce has decreased by approximately 5,000 employees in the first quarter of this year, standing at just over 106,000.

It will lead to a new core business with fewer personnel.

· Markus KamiethExplaining the impact of the optimization program on staffing.
About this summary

Originally published by Die Zeit in German. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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