China News Agency, Berlin, February 24th, comprehensive German media reports, the German chemical giant BASF said on the 24th that in view of the sharp drop in profits in 2022 and the heavy burden of the energy crisis, it plans to lay off 2,600 employees worldwide, of which nearly two-thirds Layoffs in Germany.
According to reports, in 2022, due to high energy costs and economic slowdown in Europe, BASF announced a cost reduction plan, aiming to cut 500 million euros per year outside of production from 2024, half of which will be in Ludwigshafen Headquarters realized.
According to reports, BASF has more than 111,000 employees worldwide, including about 39,000 employees at the headquarters.
The focus of cost-cutting is service, operations, R&D and corporate headquarters.
In addition to the job cuts, BASF will also take structural measures aimed at better equipping its main plant in Ludwigshafen for increased long-term competition.
Against this backdrop, several energy-intensive production facilities at the headquarters in Ludwigshafen will be closed, including an ammonia plant and associated fertilizer facilities.
Martin Brudermueller, chairman of the executive board of BASF, said in a statement on the same day that the competitiveness of the European region is increasingly affected by excessive regulation, slow and cumbersome approval procedures, especially the high cost of most production factors. .
These factors have restrained the growth of the European market over the years.
In addition, high energy prices are a drag on profitability and competitiveness in Europe.
The adjustment in Ludwigshafen is expected to reduce fixed costs by more than 200 million euros per year from the end of 2026, BASF said.
According to reports, BASF last year (2022) was deeply affected by rising energy and raw materials.
Last year, BASF spent 3.2 billion euros more on energy costs than the previous year.
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