Unease is growing in BASF’s offices, and in Berlin, it’s hitting a particularly sensitive core. The company is restructuring its central service operations, relying on India for the reorganization. Ironically, the Berlin-based service company, where around 3,000 employees handle tasks such as finance, human resources, and logistics for the corporation, is affected. This puts pressure on a location that has been considered a stable anchor for the administration for years and has been touted as a political success story. At the same time, it impacts areas that were previously considered relatively secure because they are not directly tied to individual plants or product lines. (welt: 13.02.26)
Global Hub in India – BASF’s Administrative Plans
BASF speaks of a “more agile, even more focused organization” and aims to “significantly increase cost efficiency.” Therefore, the “Global Business Services” division will be consolidated in a new global hub in India. The company announces its intention to “increase its use of cost-efficient locations.” Behind this PR formula lies a clear message: tasks are to be outsourced to where they are cheaper.
In Berlin, around 3,000 employees work for the Berlin Service Company, and the mood there is souring. However, BASF is not disclosing any specific figures on job cuts. Sources at the site indicate that up to 70 percent of administrative positions could be affected. This would correspond to more than 2,000 jobs being relocated abroad or eliminated altogether.
Second wave of withdrawals – first production, now administration
This course of action fits a pattern, as BASF has been expanding parts of its value chain outside of Germany for years. Under former CEO Martin Brudermüller, capacities in Ludwigshafen were reduced and jobs were cut. Brudermüller also repeatedly criticized high energy costs in Europe and bureaucracy as a hindrance to the company’s operations. At the same time, large investments flowed into new projects, for example in China.
Since 2024, Markus Kamieth has led the company and has largely maintained his predecessor’s approach. While he ruled out compulsory redundancies in Ludwigshafen until 2028, the focus is now visibly shifting towards administration. This is politically sensitive because the relocation doesn’t affect individual plants, but entire service chains.
Digital Hub India and Pressure on Other Locations
At the end of January, BASF announced an additional global “Digital Hub” for “digital services” in India. This creates a second center that impacts German areas of responsibility. Meanwhile, discussions about job cuts are underway at several locations, including Schwarzheide. The union speaks of hundreds of jobs affected, but BASF remains vague about personnel figures.
The company refers to ongoing planning and legal consultations. BASF also emphasizes that “no individual decisions will be made before these processes are completed.” Employees will be “informed step by step in a transparent, timely, and legally compliant process.” Such statements offer little reassurance when structures are simultaneously being moved to India.
IGBCE Warns of Wage Breaches and Announces Consequences
The IGBCE (Industrial Union of Mining, Chemicals and Energy) reacts sharply because Berlin has long been a flagship project for BASF in terms of collective bargaining. Michael Vassiliadis explained: “With this blow to employment policy, BASF is bringing to an end a model collective bargaining project that has created thousands of good jobs in the capital.” This is also why a conflict over old commitments is looming. The union had supported special regulations for Berlin around 20 years ago.
In 2005, a separate collective agreement was made possible so that BASF would consolidate internal services in Berlin and not outsource them to Slovakia. In return, employees accepted lower wages and longer working hours than those stipulated in the industry-wide collective agreement. Now, the IGBCE (Industrial Union of Mining, Chemicals and Energy) is threatening to terminate this arrangement. It sees “no prospects for continuing the company-specific collective agreement” if BASF seriously relocates operations.
Kai Wegner Demands Roadmap, Co-determination, and Collective Bargaining Agreements
Berlin’s state government is also getting involved, and unusually clearly. Berlin’s Governing Mayor, Kai Wegner, stated that he had taken note of the announcement “with great concern.” He reminded everyone that “Berlin has proven itself to be a reliable, innovation-friendly, and stable business location for BASF for decades.” With this statement, he is publicly holding the company accountable.
Wegner demands a “transparent and comprehensible presentation of the further plans for the Berlin site.” He also calls for socially responsible management, the early involvement of the works councils, and a clear timetable. At the same time, he is making the future prospects conditional, because “prospects for maintaining company activities in Berlin” must continue to be governed by collective bargaining agreements. This is precisely what will determine whether BASF in Berlin merely reorganizes or initiates a massive withdrawal.