The crisis derived from the end of the pandemic, overlapping with the war in Ukraine (which, by the way, is one year old on February 24) has not only hit technology companies.
In other business segments, the impact is also noticeable on the side of cost reductions and massive layoffs.
The latest example comes from Germany, where the chemical giant Basf will cut 2,600 jobs. At the same time, it will stop its plan to buy back shares.
The causes: falling profits, high costs in Europe, unaffordable interest rates and the uncertainty of the war in Ukraine that does not end.
Already in October 2022, BASF had announced a cost reduction plan in Europe of about 600 million dollars.
The reduction of jobs, according to Basf, will be about 2,600 employees, 65 percent of whom are employed at plants in Germany.
BASF: a giant under reconstruction
BASF is one of the largest chemical companies in the world. It has a presence on almost every continent and its portfolio includes products for a wide range of industries.
It manufactures everything from chemical and agricultural products to petroleum derivatives.
In total, it has more than 75,000 employees and a presence in Mexico.
The last balance before the pandemic reported sales of almost 60 billion euros, which makes it the leading company among global chemicals.
In particular, its expansion strategy for these years is focused on the markets of the Asia Pacific region and North America.
In Asia Pacific, Basf has plans to expand its production in China, India, Japan and South Korea.
In North America, it is looking to invest in new plants and facilities, as well as strengthen its product portfolio.
The details related to the massive layoffs of this 2023 were known in the financial report published this Friday, February 24. In the report, BASF said its profits will fall to between $5 billion and $5.4 billion in 2022, a sharp setback from 2021.
In response, the company’s shares were down 1.2 percent in premarket trading.
Basf’s massive layoffs show that the recession is not just an announcement and that companies are preparing for hard months in terms of sustaining activity.
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