BASF announces job cuts amid cost-saving strategy and new India hub

Core Viewpoint - BASF SE is implementing significant job cuts and cost-saving measures in response to ongoing challenges in the chemicals market, with a focus on its internal IT division and overall profitability [1][2]. Group 1: Job Cuts and Cost-Saving Measures - The company is targeting significant workforce reductions in its internal IT division, which employs approximately 8,500 people [1]. - BASF has increased its annual cost savings target to €2.3 billion ($2.7 billion) by the end of this year, up from a previous target of €2.1 billion [3]. Group 2: Financial Performance and Market Conditions - BASF expects adjusted operating earnings between €6.2 billion ($7.3 billion) and €7 billion ($8.2 billion) for the year, compared to €6.6 billion ($7.8 billion) last year [1]. - The CEO indicated that 2026 will be a transitional year with significant headwinds, although a market recovery may begin in the latter part of that year [2]. Group 3: Strategic Business Adjustments - The company is streamlining its portfolio to focus on more profitable business units, having already divested its coatings division and planning to list its Agricultural Solutions business in Frankfurt by 2027 [5]. - BASF is selling 4,400 apartments it owns to concentrate on its core business and strengthen its balance sheet, a move criticized by local unions [5]. Group 4: Market Reaction - BASF shares fell by as much as 5.4% in Frankfurt, reflecting investor concerns despite previous optimism regarding economic recovery [4].