BASF announces restructuring, to cut 6,000 positions by end of 2021
BASF announced an organizational realignment that it said "is creating the conditions for greater customer proximity, increased competitiveness and more profitable growth." The company stated: "BASF is streamlining its administration, sharpening the roles of services and regions and simplifying procedures and processes. As a result, the company expects savings of EUR300M, as part of the ongoing excellence program, which is anticipated to contribute EUR2B to earnings annually from the end of 2021 onwards. In the course of the strategy implementation, BASF expects a reduction of a total of around 6,000 positions worldwide until the end of 2021. This decrease results from the organizational simplification and from efficiency gains in administration and services as well as in the operating divisions. In addition, central structures are being streamlined in the context of the announced portfolio changes. BASF will continue to need additional employees in fields like production or digitalization, depending on future growth rates...The role of regions and countries is being sharpened. They represent BASF locally and support the growth of business units with local proximity to customers. First changes will take effect on January 1, 2020." In view of the current changes and further changes planned until the end of 2021, management and employee representatives have jointly decided to move forward the start of negotiations on a new site agreement for the BASF SE. The current site agreement is valid until the end of December 2020. The goal is to sign a new agreement in the first half of 2020, BASF said.