Particle.news
Download on the App Store

BASF Accelerates Job Cuts and Shifts Administrative Work to Asia

Company leaders say the changes aim to restore competitiveness at their German site because high energy bills, heavy regulation, cheaper Chinese suppliers have squeezed margins.

Overview

  • BASF has sped up a restructuring started in 2024 and says it has cut about 7,000 jobs worldwide since January 2024.
  • The workforce at the Ludwigshafen headquarters fell below 30,000 full-time positions for the first time since 1954, a reduction the company calls necessary to make the site competitive again.
  • Management plans further moves of administrative services to Asia that affect roughly 8,500 roles and has opened a new large plant complex in China as part of the geographic shift.
  • The cuts and sales of non-core units, including the paints and sealants business, coincided with stronger second-quarter results of €17.2 billion in revenue and €2.4 billion in EBITDA before special items, prompting BASF to raise its 2026 profit forecast to €6.9–7.7 billion.
  • The company now employs about 95,000 people worldwide and the restructuring highlights wider pressure on Germany’s chemical sector from high energy costs, heavy regulation and lower-cost competition from China that could further reshape jobs and investment choices.