BASF Commits to Safeguarding Jobs at the Ludwigshafen Site Through 2028 with Multi-Billion-Euro Investments

On December 15, BASF said that its main plant in Ludwigshafen, Germany, will not carry out compulsory layoffs for at least the next three years and pledged to invest €1.5–2.0 billion annually in the modernization of the site.

BASF stated that it has reached a new agreement with employee representatives entitled “Shaping the Future, Creating a Strong Region,” which will be effective from January 2026 to December 2028 and may be extended by a further two years if agreed profitability targets are met.

As part of the agreement, BASF commits not to implement compulsory redundancies for operational reasons during the term of the agreement, thereby safeguarding the jobs of around 33,000 employees. The Ludwigshafen headquarters site is Europe’s largest chemical complex and accounts for roughly one-third of BASF’s global workforce.

According to the industry association VCI, German chemical companies are struggling through another year of downturn, with average plant capacity utilization at only 70% this year.

The agreement also outlines comprehensive changes to work organization. BASF will streamline organizational structures, increase flexibility, and accelerate the application of digitalization and artificial intelligence to boost productivity, while maintaining strict discipline in sustainable cost optimization. Working time management will also be modernized, with digital tools used to optimize workforce deployment.

Katja Scharpwinkel, member of BASF’s Board of Executive Directors and Chief Labor Relations Officer, said: “The new site agreement is the result of constructive negotiations between management and employee representatives. It brings the necessary change and flexibility and supports restoring the competitiveness of the Ludwigshafen site.”

“At the same time, in a rapidly changing environment, it provides guidance and reliability. The commitment to no compulsory layoffs for at least three years gives us the security needed to implement transformation projects. We will also continue to invest in Ludwigshafen—this demonstrates that the site has a positive future, and our employees, with their expertise and experience, make a decisive contribution.”

The Ludwigshafen site has faced high costs and overcapacity for many years and has accumulated losses of several billion euros in recent years. CEO Markus Kamieth has said that reaching a new agreement would support the company’s investment strategy and further cost reductions, with plans to save more than €1 billion at Ludwigshafen by 2026.