Chemical company BASF lays off 2,600 jobs worldwide

BASF announced an austerity program last year due to rapidly rising energy costs and the slowdown in the economy in Europe. From 2024, the company wants to save 500 million euros per year outside of production, half of which will be realized at the main plant in Ludwigshafen. The focal points of the cost savings are the service, corporate and research areas and company headquarters.

“The competitiveness of the European region is increasingly undermined by overregulation,” said company boss Martin Brudermüller, according to the announcement. It also suffers more and more from slow and bureaucratic approval procedures and above all high costs for most factors of production. All this has slowed market growth in Europe compared to other regions for many years. In addition, high energy prices now have a negative impact on profitability and competitiveness in Europe.

BASF has announced that the adjustment in Ludwigshafen from the end of 2026 will likely result in a reduction of annual fixed costs by more than 200 million euros. In addition to its cost reduction program, BASF also takes structural measures. In this way, the main factory in Ludwigshafen needs to be better prepared for the ever-increasing competition in the long run. Among other things, one of the two ammonia plants and a TDI plant, as well as plants for certain precursors, will be closed here.

(SDA)

Source :Blick