German chemical giant BASF on Tuesday announced that it would shed 2,000 or nearly 24% of jobs at its newly-established business services unit by 2022 to help cut costs. The division was created in January 2010 and consisted of about 8,400 employees from across the group. They help the company with services, such as logistical assistance, communication, human resources, communication, as well as health and safety.
According to BASF, the layoffs would help to save €200 million ($234 million) a year by 2023. This move follows BASF’s other saving measures, including the implementation digitalization strategy and bundling of services and resources.
BASF posted a net loss of nearly €900 million in the second quarter of this year as demand from the auto industry slumped amid efforts to contain the coronavirus pandemic. The group employs 117,000 global staff, including more than 50,000 in Germany.
