Headquarters Cost-Cutting Saves Millions for BASF, Excluding Wine Cellar Expenses
Hear This: BASF's Hefty Cost-Cutting Mission--Skimping on Initial Billions, Yet Holding onto the Booze
Get ready for some serious belt-tightening at BASF's Ludwigshafen headquarters! The world-leading chemical conglomerate is aiming to slash over a billion euros from its expenses by the end of 2026. You might've heard about the thousands of jobs that are on the line, but there are some areas that the DAX giant is choosing not to touch.
BASF's boss Katja Scharpwinkel told the “Frankfurter Allgemeine Sonntagszeitung” that the company is expecting to shave 500 million euros off the operating costs of its HQ by year's end, putting them well on track for their savings target. The plant has been losing money since the Ukraine war cut off cheap Russian gas supplies to Germany over three years ago. To add some salt to the wound, BASF's been closing energy-intensive facilities while targeting cost-saving opportunities that don't have anything to do with energy.
But fear not, because BASF's famous wine cellar and after-work club won't be sacrificed in these rough times. With events like concerts and galas taking place in the club, BASF workers can still unwind after a long day of work.
So far, BASF has shed around 2,500 jobs in Ludwigshafen since 2023. The company has managed to forgo dismissals due to operational reasons until the end of 2025 thanks to a location agreement. negotiations with employee representatives for a new agreement are underway.
When asked about potential additional job cuts and facility closures, Scharpwinkel remained tight-lipped. For the record, BASF's recently announced plans to acquire DOMO Chemicals’ 49% share in the Alsachimie joint venture don't come with any fresh job cut announcements or specific facility closure news[1]. However, as the chemical industry in Europe grapples with escalating energy costs and carbon taxes, we could see inefficient plants closing down in the near future[5].
In the meantime, keep an eye on BASF's revised location agreement negotiations and, of course, whatever's happening behind the closed doors of that fancy wine cellar. Stay tuned!
References:- ntv.de- jwu/DJ- [1] Chemical Watch- [4] Chemical Engineering- [5] Chemical & Engineering News
- In an effort to reduce costs and achieve their savings target, BASF may invest in vocational training programs for its workforce, as part of their community policy, in an attempt to promote efficiency and innovation within the business.
- To facilitate thetransition and adapt to financial challenges, BASF could collaborate with local industries and financial institutions to provide vocational training for employees, ensuring a smoother transition and long-term business success.
