BASF plans to cut 6,000 jobs
Citing a slowing demand for chemicals, BASF said its efforts to reduce its workforce will take until the end of 2021.
German chemical giant BASF is cutting 6,000 jobs worldwide in response to slowing demand for chemicals in a range of industries including the automotive and electronics sectors.
The reduction in the workforce will be implemented globally through 2021 and is expected to produce 300 million euros (US$340 million) in savings, according to a June 27 statement released by BASF. The company expects the move to contribute 2 billion euros (US$2.2 billion) to its earnings beginning at the end of 2021.
The reduction of the labour force “results from the organizational simplification and from efficiency gains in administration and services as well as in the operating divisions,” BASF’s statement said. “In addition, central structures are being streamlined in the context of the announced portfolio changes. BASF will continue to need additional employees in fields like production or digitalization, depending on future growth rates.”
The statement added that BASF its Corporate Center will consist of fewer than 1,000 employees and will support BASF’s Board of Executive Directors in steering the company as a whole.
In addition to the cuts, BASF also plans to make 29,000 jobs more flexible through the deployment of engineers, digital experts and other employees to different sites or business units when needed. This modification represents a fundamental change to BASF’s work culture, where personnel have traditionally been assigned to specific units.