BASF official announcement: Launch layoff plan

In order to ensure the company's continuous profitability, BASF's management formulated a austerity plan in November 2018, that is, starting from the end of 2021, the austerity policy needs to contribute 2 billion euros to BASF's pre tax operating profit The realization mode is mainly to save production, logistics and R & D costs In addition, BASF will sell part of its business BASF's largest customer base is the automotive industry, which accounts for about 20% of its sales At the beginning of the year, BASF expects the auto industry to recover slightly However, by the end of last year, Chinese customers' demand for the automobile industry had declined significantly So far, BASF expects sales to grow by 5% in 2019 and adjusted operating profit (EBIT) to increase by 1% to 10% Moreover, the growth rate of 1% seems to be closer to reality The price of electricity in Germany continues to rise, with a "historical record" set in mid-2019 This is called a "warning signal" by many German experts In order to fulfill its environmental protection commitments to the EU, Germany has continued to propose a "carbon dioxide tax" In 2019, the production cost of German enterprises increased significantly Recently, various major German media published the news that BASF announced large-scale layoffs Martin Bruder m ü ller, chief executive of BASF, said in an interview with German media Frankfurt report on June 16 local time that in order to ensure the growth rate of BASF's business, he would start the layoff plan BASF will focus more on its advantageous sectors after the deal to sell the group's pigment and construction chemicals sectors is concluded In the future, "acquisition of other businesses" and other matters will be carried out more cautiously Martin Bruderm ü ller, BASF's chief executive, is aware that BASF will cut jobs on a large scale in Muenster, Germany The automotive and automotive touch up paint and coating businesses are affected by the weakness of the automotive industry and will cut 200 jobs from the local 2400 employees by 2021 After announcing the layoff plan, Martin Bruder m ü ller, CEO of BASF, also made policy recommendations to the German government BASF hopes that the German authorities can provide sufficient renewable energy for enterprises and give a clear price for carbon dioxide from a long-term perspective.