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6/27, 3:18 PM (Source: TeleTrader)
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BASF announces restructuring, cuts 6,000 jobs

BASF SE announced on Thursday restructuring plans for its corporate organization, stating that it is cutting down the number of jobs worldwide by 6,000. The chemical company said it aims to get closer to customers, boost competitiveness, and restore profitability. BASF pointed out that it expects to save up to €300 million following the changes, which is set to contribute approximately €2 billion to its annual earnings, starting from 2021.

The company explained that the job cuts come as a result of efforts to simplify its organization, as well as an increase of efficiency in administration, service, and operating divisions. Also, BASF said central structures are being streamlined due to portfolio restructuring.

"We will set up the new organization with a clear focus on leveraging synergies, reducing interfaces and enabling flexibility and creativity," BASF board chairman Dr. Martin Brudermueller commented. "We want our customers to experience a new BASF. To achieve this, we have to live a new BASF. We will therefore continue to develop our organization to work more effectively and efficiently," he added.

Breaking the News / SS