BASF created a new business services unit in January and hired 8,400 employees from across the group who support BASF's other divisions through services such as human resources, communication, health and safety and logistical assistance. Now to save costs its shedding the staff and it would cut 2,000 jobs.
The Ludwigshafen-based group employs 117,000 people worldwide, including more than 50,000 in Germany.
"Overall, with these planned measures, we will make a considerable contribution to BASF Group's efficiency," Marc Ehrhardt, head of the Global Business Services division, said in a statement.
BASF booked a second-quarter net loss of nearly 900 million euros this year, partly because of a slump in demand from the auto industry, its most important customer, during the coronavirus lockdowns. The German chemical giants shared that BASF said shedding 2,000 jobs by the end of 2022 would help the group save 200 million euros ($234 million) annually by 2023. The automotive sector which was already struggling since last year now faces newer challenges amid the pandemic. The demand has been severely impacted due to the lockdown and the ripple effect it has had on the ecomomy overall.
As business leaders become more cautious and the uncertainity continues to be there about the economy bouncing back, talent shall continue to suffer. More layoffs and job losses continue.