BASF announced layoffs of more than 2,000 people

A few days ago, BASF announced that it is entering the implementation phase of the restructuring of the global business services department announced in September 2020. BASF stated that most of the services provided by this department to the company will be transferred to service centers in March 2021.

As part of BASF's corporate strategy, Global Business Services was established on January 1, 2020. Up to now, there are approximately 8,400 employees working in this department worldwide.

It is reported that the establishment of the Global Business Services Department is one of the results of BASF's organizational restructuring. This department provides services to BASF's business units, covering a series of services in the fields of finance, logistics, communications, human resources, environment, health and safety.

BASF said that through service, resource integration, and extensive implementation of digital strategies, by the end of 2022, the number of employees in the global business service department will be reduced by up to 2,000 people compared with the current one. BASF predicts that after the completion of the layoff plan, the operating costs of the division will be reduced by 200 million euros per year from 2023.

While adjusting its organizational structure, BASF also announced last year that it would lay off 6,000 employees in the next two and a half years, accounting for about 5% of BASF's total employees. BASF revealed that it will lay off 3,000 employees in Germany, accounting for half of the total number of layoffs.

So far in 2020, the global economy has been afflicted by the new crown pneumonia epidemic, especially the second wave of epidemics in some regions and countries, and the future prospects are worrying. Since the beginning of this year, many chemical companies have announced plans for layoffs. The recovery momentum of the petrochemical market will be suppressed.