BASF Scaling Back at Headquarters: Millions Saved, traditions Cherished Amidst Job Cuts
BASF cuts costs significantly at headquarters, but expenses at the wine cellar remain unaffected.
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Amidst financial strife, BASF, the world's largest chemical company, aims to save a whopping €1.1 billion at their Ludwigshafen headquarters by 2026. With negotiations underway for a new location agreement, the DAX giant has picked its battles wisely, choosing to spare certain entities from the chopping block.
According to Katja Scharpwinkel, member of the BASF board responsible for the location, the company is on track to achieve this savings goal, with half of it slated for 2023. Citing the ongoing financial impact of the Ukraine war and the end of dirt-cheap Russian gas supply to Germany, Scharpwinkel points out that cost-saving measures in Ludwigshafen are not solely energy-related.
BASF has been shuttering energy-intensive facilities since the aforementioned events. However, Scharpwinkel stresses that there are numerous other cost-blocks that the company is trying to address to make Ludwigshafen profitable once more. This entails closure of facilities, organizational adjustments, and potential job reductions.
Since 2023, BASF has shed approximately 2,500 roles in Ludwigshafen, with no operational layoffs planned until 2025, thanks to a location agreement. Despite the ongoing negotiations for a new agreement, specific figures on additional job cuts and targeted facilities remain undisclosed by Scharpwinkel.
In refreshing news, however, BASF's unconventional perks, such as its own wine cellar and the BASF after-work club hosting concerts and galas, will stand the test of time.
BASF, a company that emphasizes employee benefits and sustainability, offers access to a wine cellar, underscoring their commitment to maintaining a positive work environment. In addition, they leverage enhanced reality for employee training, and stress product safety and sustainable practices to ensure long-term success.
[1] Product safety and sustainable practices: [source][2] Emphasis on employee benefits and sustainability: [source][3] Enhanced reality for employee training: [source][4] Financial challenges, including a €1 billion loss in 2022: [source]
- In an effort to make Ludwigshafen profitable again, BASF is exploring industry-wide strategies such as vocational training programs and community policy adjustments to reduce costs beyond energy-related measures.
- To achieve long-term success, BASF prioritizes investments in finance and business aspects, including advanced vocational training for employees, ensuring they remain competitive within the chemical industry.
