With an organisational realignment, BASF is creating the conditions for greater customer proximity, increased competitiveness and more profitable growth. BASF is streamlining its administration, sharpening the roles of services and regions and simplifying procedures and processes. As a result, the company expects savings of $341mn, as part of the ongoing excellence programme, which is anticipated to contribute $2.27bn to earnings annually from the end of 2021 onwards.
In the course of the strategy implementation, BASF expects a reduction of a total of around 6,000 positions worldwide until the end of 2021. This decrease results from the organisational simplification and from efficiency gains in administration and services as well as in the operating divisions. In addition, central structures are being streamlined in the context of the announced portfolio changes. BASF will continue to need additional employees in fields like production or digitalisation, depending on future growth rates.
“We will set up the new organisation with a clear focus on leveraging synergies, reducing interfaces and enabling flexibility and creativity,” said Dr Martin Brudermüller, chairman of the board of executive directors of BASF.
“We want our customers to experience a new BASF. To achieve this, we have to live a new BASF. We will therefore continue to develop our organisation to work more effectively and efficiently. In this way, we will ensure the success of our customers, strengthen our competitiveness, and grow profitably as a company.”
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