A chemical giant, BASF has announced its plans to cut 2,600 jobs which account for about 2% of its global workforce owing to revenue decline, high interest rate and uncertainties from the Russian-Ukraine war.
Reuters reported that the world’s largest chemical producer disclosed this in a statement on Friday.
It stated that 2023 earnings before interest and tax, adjusted for special items, would drop from 6.9 billion euros in 2022, which was down 11.5% from 2021, to between 4.8 billion euros and 5.4 billion.
The biggest chemical firm is adjusting to future operations without the usual cheap Russian gas.
BASF said, “it would close some of its factories which include two ammonia plants and related fertilizer facilities. This closure will cause about 700 job cuts at its main Ludwigshafen plant in Ger
As a result of the decline in the world economy, BASF is also ending a share buyback program.
It was reported in October last year that the chemical giant made plans to reduce annual costs in Europe by 500 million euros.
BASF, however, disclosed on Friday that the plan to cut down running costs would result in the 2,600 jobs to be cut. It also specified that about 65% of the job cuts would be in Germany.
It said, “More jobs were affected overall, but the effect on workers would be tempered as new positions would be created.”
