Crisis at BASF: Corporation Relocates Hundreds of Jobs from Berlin to India and Asia

The German chemical industry is going through one of the most difficult periods in its post-war history, and the BASF corporation has become a symbol of these problems. The company's management has announced plans to transfer hundreds of administrative and service positions from Berlin to India. This decision prompted an immediate reaction from employees, who organized demonstrations under trade union banners. Workers point out that the transfer of competencies to Asia not only hits the local job market but also constitutes a fundamental breach of existing social contracts within the corporation. The company argues that the drastic fixed cost of operating in Germany, combined with the energy crisis, is making European production increasingly less profitable. The current situation at BASF is closely linked to the general slowdown in the chemical sector, as confirmed by data showing a drop in employment of nearly 4,800 people in the last reporting period. The company's CFO emphasizes that deep investment cuts are necessary to maintain competitiveness in global markets. Stock market analyses indicate that the structural problems of the giant are affecting sentiment across the entire DAX index, which has recorded fluctuations despite stabilization attempts. In Ludwigshafen, where the company's headquarters are located, a state of alarm prevails due to fears of further production capacity reductions. The relocation of business processes to Asia is seen by experts as an attempt to escape high electricity prices and stringent environmental regulations in the European Union. BASF, founded in 1865 as Badische Anilin- und Sodafabrik, has for decades been a cornerstone of the German economic miracle, being the world's largest integrated chemical producer within the Verbund system. In financial markets, the news of savings at BASF coincided with the publication of results from other giants, such as Deutsche Telekom or Siemens Energy, which recorded gains. Nevertheless, the chemical sector remains under strong pressure, which is reflected in the share prices of Heidelberg Materials and Qiagen. The situation is complicated by reports from US stock exchanges, where concerns about interest rates and the condition of the banking sector are putting additional pressure on European trading floors. Although some companies, like Vonovia or Porsche, recorded slight gains at the opening, the overall picture of the German economy remains uncertain due to the growing process of deindustrialization, of which BASF has become an unwitting leader. „Das ist ein Vertrauensbruch. Diese Arbeitsplätze waren das Fundament unserer Stabilität.” (This is a breach of trust. These jobs were the foundation of our stability.) — BASF employee in Berlin „Wir müssen unsere Kostenstrukturen an die neue Marktrealität anpassen.” (We must adapt our cost structures to the new market reality.) — BASF Chief Financial Officer