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Chemical giant BASF to slash 3,000 jobs in Germany

Massive German chemical company BASF said Thursday it would slash 6,000 jobs worldwide by 2021, as the company slims down its organization in pursuit of fatter margins.

Published: 27 June 2019 16:04 CEST

Chemical giant BASF to slash 3,000 jobs in Germany

BASF's headquarters in Ludwigshafen. Photo: DPA

“BASF expects a reduction of a total of around 6,000 positions worldwide until the end of 2021” out of 122,000 employees, the company said in a statement, saying the layoffs would save around €300 million annually.

Around 3,000 of those jobs will be in Germany at its headquarters in Ludwigshafen am Rhein, a city in Rhineland-Palatinate in west Germany.

The move is part of a broader “excellence programme” aimed at boosting profits by €2 billion per year.

The cuts come amid news Thursday that auto giant Ford would slash 12,000 jobs throughout Europe, with nearly half of them in Germany.

Centralize services

BASF executives aim to “develop our organization to work more effectively and efficiently,” chief executive Martin Brudermüller said.

The firm said it would centralize many services common to its different divisions, like engineering, procurement, human resources, finance and logistics, as well as create a 1,000-strong “corporate centre” to support executives.

As part of the restructuring, bosses and worker representatives at BASF's headquarters in Ludwigshafen agreed to bring forward negotiations on a new site agreement to early 2020 — well ahead of the current jobs and investment deal's expiry date of December next year.

The group has long trailed a reorganization after a tricky 2018 and early 2019 that have seen trade conflicts and one-off factors weigh on profits.

Last year it also gobbled up billions of euros' worth of agrichemical business from Bayer as part of the other company's takeover of US-based Monsanto.

Bayer, a worldwide pharmaceutical and chemical giant, also announced in April that it would be slashing 4,500 jobs in Germany, or one-third of its total cuts worldwide, in order to tighten its finances.

SEE ALSO: Bayer to cut 4,500 jobs in Germany

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Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions.

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds.

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local.

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with.

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