On May 20, 2026, the chemical group BASF announced the “CoreShift” cost-cutting program in Ludwigshafen, thereby confirming further job cuts within the corporation. The group aims to reduce cash-relevant fixed costs in its core business by up to 20 percent by 2029, compared to 2024 levels. The four core segments—Chemicals, Materials, Industrial Solutions, and Nutrition & Care—are affected. At the same time, internal services, IT processes, and the Ludwigshafen site itself are undergoing restructuring. However, the exact number of jobs affected remains undisclosed. (swr: 21.05.26)
CoreShift Cost-Cutting Program Aims to Significantly Streamline Chemical Group by 2029
The cost-cutting program encompasses business segments generating approximately 40 billion euros in revenue. BASF intends to simplify processes and standardize operations more extensively on a global scale. Consequently, the group is targeting areas beyond just production.
CEO Markus Kamieth described the move as a profound intervention in the core business. According to him, BASF is set to operate with a reduced workforce. At the same time, personnel costs are expected to account for a significant portion of the projected savings.
Ludwigshafen Faces Further Cuts
The Ludwigshafen headquarters remains a central element of the restructuring process. Approximately 30,000 employees work at the site. Since the beginning of 2024, BASF has already eliminated around 2,800 jobs at this location.
However, Works Council Chairman Sinischa Horvat believes the exact scope of the cuts for Ludwigshafen remains an open question. BASF has already implemented substantial reductions in the production and technical departments; consequently, he expects these areas to be less of a focal point this time around.
Internal Services and AI Gain Importance
BASF also intends to reorganize its HR administration, accounting, logistics, and procurement functions. Furthermore, the group plans to implement more standardized IT solutions through a new ERP system. Artificial intelligence is expected to accelerate processes and reduce costs.
A new Core Transformation Office has been established to steer this restructuring effort. Julia Raquet heads this unit and reports directly to Kamieth. In doing so, BASF is consolidating responsibility for the implementation at the Executive Board level.
Job Cuts Undisclosed; Uncertainty Remains High
BASF has not yet provided a specific figure regarding the number of job cuts. Consequently, discussions with employee representatives are scheduled to clarify the next steps. For employees and suppliers alike, the situation in Ludwigshafen remains tense.
According to the company, this cost-cutting program is an integral part of the strategy unveiled in 2024. It is not intended as a short-term reaction to a downturn in economic conditions. Nevertheless, BASF is thereby intensifying its restructuring efforts during a challenging period for the chemical industry.