German chemicals giant BASF to cut 2,000 jobs

10:00 | 23/09/2020

German chemicals giant BASF said Tuesday it would cut 2,000 jobs in its newly created business services unit to help slash costs.

german chemicals giant basf to cut 2000 jobs
The logo of German chemical giant BASF is seen on flags fluttering in front of the company's headquarters in Ludwigshafen, western Germany, on February 28, 2020. The German chemical group BASF announced on September 22, 2020 that it was cutting 2,000 jobs in its newly created division responsible for supporting its commercial services.(Daniel ROLAND / AFP)

The unit was created in January and bundles 8,400 employees from across the group who support BASF's other divisions through services such as human resources, communication, health and safety and logistical assistance.

BASF said shedding 2,000 jobs by the end of 2022 would help the group save 200 million euros ($234 million) annually by 2023.

"Overall, with these planned measures, we will make a considerable contribution to BASF Group's efficiency," Marc Ehrhardt, head of the Global Business Services division, said in a statement.

BASF booked a second-quarter net loss of nearly 900 million euros this year, partly because of a slump in demand from the auto industry, its most important customer, during the coronavirus lockdowns.

The Ludwigshafen-based group employs 117,000 people worldwide, including more than 50,000 in Germany.

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