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BASF is facing dramatic job cuts: 1,800 jobs at risk!
BASF announces extensive job cuts in Ludwigshafen. CEO explains profound restructuring to optimize costs.
BASF is facing dramatic job cuts: 1,800 jobs at risk!
BASF in Ludwigshafen is facing a fundamental restructuring that not only affects numerous jobs, but also the future of the location. CEO Markus Kamieth recently spoke about the challenges facing the world's largest chemical company. Loud Mercury The workforce at the headquarters in Ludwigshafen will continue to shrink, and there are reasons for that.
BASF has already cut more than 800 jobs in 2024 and is now planning to cut a total of around 1,800 jobs in a first phase. The current number of employees is around 33,700, after having been steadily declining for some time. In 2023, despite international profits, the group experienced a bitter setback in Germany, as the numbers fell sharply and the main plant was in the red for years, as well SWR reported.
Development of the situation
Why is BASF doing so badly? The reasons are varied: high energy costs and declining demand in Germany are putting a severe strain on production. CEO Martin Brudermüller described the situation as serious, while CFO Dirk Elvermann pointed out that the location was in the red. Declining sales, which fell more than 20 percent in 2023, have led BASF to seek significant savings, including shutting down several plants.
The planned savings are expected to total around one billion euros annually by 2026, although the exact measures are still unclear. A second wave of job cuts could affect many more employees. A robust reduction of 2,500 jobs was already announced in February 2023, but the first wave is still pending.
Where is the journey going?
Daily news added. Kamieth underlines the necessity of this transformation by saying that we are only at the beginning of this process.
The IGBCE union has already reacted to the tough cuts and is calling for more investments in the future instead of accepting job losses. Their criticism of the austerity programs is becoming increasingly louder, while the employees in Ludwigshafen have to prepare for an uncertain future.
BASF's founding roots give reason for hope: after all, the company was founded in Mannheim in 1865 and has since developed into a giant. The coming restructuring will not only put the company's business strategy to the test, but also its social responsibility. It remains to be seen how this situation will develop and what measures will ultimately be taken.