Germany’s BASF plans to lay off 2,600 jobs

The German chemical company BASF announced that it will lay off 2,600 people worldwide, especially in Europe, after the heavy burdens caused by the war between Russia and Ukraine and the energy crisis.

BASF’s statement highlighted that the high level of uncertainty that arose last year from the Russia-Ukraine war, the high costs of raw materials and energy in Europe, the rise in prices and interest rates, inflation and the development of the Covid19 The pandemic will continue in 2023.

Two thirds of layoffs are in GERMANY

With these uncertainties, the company has warned of a further drop in earnings from 2023 and BASF is reported to lay off about 2,600 people, about two-thirds of whom are in Germany, and stop share buybacks.

BASF stated that its adjusted earnings before interest and taxes (EBITDA) for 2023 will decrease from €6.9 billion in 2022 to between €4.8 and €5.4 billion.

In his assessment on the issue, BASF Chief Executive Martin Brudermueller noted that Europe’s competitiveness is further damaged by excessive regulation, including lengthy permitting processes and high costs, especially for the production factor. (AA)