BASF cuts its workforce to the lowest level in seven decades while launching a up‑to‑€1 billion share buyback
Executive summary: BASF said it will shrink its global workforce to the lowest level in 70 years and approved a share‑buyback programme of up to €1 billion. The staff cut signals deep cost‑saving measures in a struggling European chemicals market, while the buyback shows the firm retains strong liquidity and aims to return capital to shareholders.
Who is involved: BASF SE (management and works council), employees across its sites, and shareholders receiving the repurchase.
Likely next: BASF will begin consultations with the works council on the layoffs, implement the voluntary severance programmes by Q4 2026, and launch the buyback tranche in August 2026.
The German chemical giant announced a major staff reduction as part of its ongoing corporate overhaul, aiming to bring employment down to levels not seen since the 1950s. At the same time, BASF unveiled a share‑repurchase programme worth as much as one billion euros, signalling confidence in its cash generation despite the cost‑cutting drive. The move reflects a broader trend among European chemicals companies to balance profitability with headcount adjustments amid weak demand.
Timeline
- — Chemie: Stammwerk schrumpft: Chemiekonzern verkleinert Belegschaft auf tiefsten Stand seit 70 Jahren (Handelsblatt)
- — Konjunktur: Investitionsbereitschaft im Mittelstand sinkt auf tiefsten Stand seit mehr als 30 Jahren (Handelsblatt)
Analysis — what this means
Likely next events
- BASF to start voluntary severance offers in September 2026 targeting ~5 000 positions.
- First tranche of the €1 billion share buyback expected to commence in August 2026.
- Works council consultation to conclude by end of October 2026 under German Codetermination Law.
Sectors affected
- Specialty chemicals
- Basic chemicals
- German industrial manufacturing
Regulatory implications
- Under Germany’s Works Constitution Act (BetrVG), BASF must inform and consult the works council before layoffs affecting more than 20 employees.
- Any collective agreement triggered by the reductions will be subject to the German Collective Bargaining Act.
Historical parallels
- BASF reduced staff by roughly 6 000 during the 2008‑09 financial crisis.
- In 2020 BASF announced a temporary hiring freeze and reduced hours due to COVID‑19 demand shock.
Key entities
Sources
- Chemie: Stammwerk schrumpft: Chemiekonzern verkleinert Belegschaft auf tiefsten Stand seit 70 Jahren — Handelsblatt
- Konjunktur: Investitionsbereitschaft im Mittelstand sinkt auf tiefsten Stand seit mehr als 30 Jahren — Handelsblatt
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