The world's largest chemical company, BASF, has announced a radical acceleration of its savings program in response to structural problems in the European sector. The company has already confirmed the elimination of 4,800 jobs, with hundreds more positions from Berlin set to be relocated to India. This decision has sparked fierce protests from workers, and trade unions accuse management of breaching trust, despite receiving billions in state support.
Massive Job Cuts
The BASF conglomerate has confirmed the elimination of 4,800 jobs, which is part of a broad savings program aimed at improving financial results.
Relocation to India
Hundreds of positions from the service center in Berlin will be relocated to Asia, sparking mass protests by workers on the streets of the German capital.
Structural Crisis in the Sector
Management points to high energy costs and weak demand in Europe as the main factors forcing the relocation of operations to poorer regions.
The German chemical giant BASF is going through one of the most difficult periods in its modern history, resulting in drastic personnel decisions and a restructuring of global operations. The company's management has officially confirmed that 4,800 jobs have already been eliminated as part of ongoing remedial actions, but this is not the end of the cuts. The main reasons for pessimism are the persistent downturn in the chemical sector, high energy costs in Germany, and regulatory pressure, forcing the conglomerate to seek profitability outside Europe. Plans concerning the Berlin service center have sparked particular controversy, as hundreds of jobs are to be relocated from there to India. Workers in Berlin have taken to the streets, demonstrating against a strategy they call 'betrayal' and a 'lack of loyalty' to the domestic job market. Investor sentiment remains mixed, although financial data for the latest period indicates a return to net profit thanks to aggressive cost-cutting. Nevertheless, the company's Chief Financial Officer (CFO) warns of further difficulties in 2026, suggesting that the process of optimizing the employment structure will last longer. One of the key points of contention is the fact that BASF benefits from state subsidies, which, in the opinion of trade unionists, should oblige the company to maintain production and employment in Germany instead of pursuing relocation to the Asian region. In Ludwigshafen, the operational heart of the company, a state of alarm also prevails, as its plants are most exposed to changes in energy raw material prices and global trade turbulence. The chemical sector in Germany has been the industrial foundation of the country for decades, benefiting from cheap gas supplies from Russia. Russia's aggression against Ukraine in 2022 and the cutoff of blue fuel supplies have permanently undermined the competitiveness of this production model.An interesting thread in BASF's legal strategy is considering a lawsuit against the USA regarding tariff refunds, which shows how broad the conglomerate's front is in the fight to improve financial results. The company is trying to balance drastic savings with the necessity of investing in new technologies, including in China, raising additional questions about Europe's future technological sovereignty in the field of specialty chemicals. The situation at BASF is currently treated by market analysts as a litmus test for the entire condition of the German heavy industry, which is struggling with the process of deindustrialization and capital flight to regions with lower operating costs. „Das ist ein Vertrauensbruch: BASF will Hunderte Berliner Jobs nach Indien verlagern” (This is a breach of trust: BASF wants to relocate hundreds of Berlin jobs to India) — BASF employee during protest
Perspektywy mediów: Media emphasize the drama for employees and criticize management for relocating profits at the expense of German families and social stability. Business analysts stress the necessity of adjusting costs to global market realities to protect the profitability of the entire conglomerate.