Due to the hike in the fuel price the chemical-making company BASF decided to reduce 2,600 jobs in a cost-cutting this year.
This decision was taken after the allegations that the company’s fuel and oil subsidiary is getting out from Russia in 2022 which made a big loss to the company.
Fuel Price Increased Jobs Decreased
Head of the BASF company situated in Germany, Ludwigshafen announced that the company’s service, operations, and research and development team decided to reduce the expense of 500 million euros from the annual expense of this year and the next year.
CEO of BASF Martin Brudermuller says that some of the factories in the Ludwigshafen site will be closed due to this nearly 700 manufacturing works will be affected.
But Martin Brudermuller says that he trusts that most of the affected employees will be transferred to some other factories of them.
- Chemical company BASF decided to reduce their employees due to the increase in fuel prices.
- Some of the factories in the Ludwigshafen site will be closed.
- Due to this factories shut most of the workers will lose their job.
- But they can place some of them in some other factories of BASF.
It was intended that these steps will be taken at the end of the year 2026 to reduce 200 million euros in fixed costs from the annual expenses.
In the year 2022, the BASF company announced that they have a loss of 627 million euros to the continuation of 5.5 billion euros profit.
In addition to that the unit’s gas transportation business contributed €6.3 billion (£5.56 billion) to the result and is related to the exit of its Wintershall Dee oil and gas subsidiary from Russia.
This incorporates a total set-up account of the organization’s support in Nord Stream AG.
Wintershall Dea held a 15.5% stake in the administrator of the Nord Stream 1 pipeline under the Baltic Ocean, which is a larger part claimed by Russia’s Gazprom and has not shipped gas to Germany since August.
The pipeline was harmed in a blast in September that agents depicted as damaged. BASF says it has more than 111,000 workers around the world.
“Worldwide nearly 2,600 employees will lose their job due to this cost-cutting it also includes creating the new positions, especially at the centers.”
-BASF
