BASF to cut 2,000 jobs in global business services division

BASF expects to reduce the total number of employees at its Global Business Services division by 2,000 by the end of 2022, according to the report.


BASF said on Tuesday that the job cuts are part of a restructuring of the division. The Global Business Services division was established on Jan. 1, 2020, and currently employs about 8,400 people.


The restructuring will result in annual cost savings of more than 200 million euros starting in 2023.


The division serves BASF's business units, from financial and logistical processes to the areas of communications, human resources, environment, health and safety.


The head of Global Business Services, said: "By radically simplifying our processes and leveraging digital solutions, we expect to be able to flexibly and competitively meet the needs of BASF's business units."


He said that as part of the restructuring, more services will be bundled into the centre to provide as many services as possible to BASF Group subsidiaries.


Speaking to ICIS, a company spokesperson said that although the division was set up before the outbreak of the coronavirus crisis in March this year, over the past few months it has set a goal to focus on key areas such as bundled services, process simplification and digitisation.


The spokesperson said: "As part of this process, the department will also be looking more closely at the needs of BASF's business and identifying measures to improve efficiency."


 "The details will be finalised in the coming months."


The spokesman did not comment specifically on whether or to what extent the restructuring was prompted by the trend towards working from home, driven by the coronavirus health crisis.


Earlier this month, the German chemicals giant said it would not go ahead with plans to build a new office building at its Ludwigshafen production centre, citing changes in the economy and a shift towards more mobile working practices.