BASF to reduce 2,000 headcount from Global Business Services unit by end-2022

BASF is planning realignment of its Global Business Services unit. The division was set up on January 1, 2020, as part of the implementation of BASF’s corporate strategy. As of that date, around 8,400 employees worldwide were transferred to Global Business Services and since then have been providing services for BASF’s business units, ranging from financial and logistical processes to services in the areas of communication, human resources, environment, health and safety.

According to the company, following the bundling of services and resources and the implementation of a wide-ranging digitalisation strategy, the number of employees in Global Business Services worldwide will decline by up to 2,000 by the end of 2022. From 2023 onward, the unit expects to achieve annual cost savings of over 200 million euros (Rs 1,653 crore). “Overall, with these planned measures, we will make a considerable contribution to BASF Group’s efficiency,” said Marc Ehrhardt, head of the Global Business Services division.

“By fundamentally simplifying processes and utilising digital solutions, we want to meet the needs of the BASF business units flexibly and competitively,” said Ehrhardt, describing the objective. As part of this, more services than before will be bundled in hubs, which will offer as many services as possible for the units in the BASF Group.

According to the company, details of the planned realignment will be worked out in the coming months. Employee representatives will be involved according to local rules and regulations.