BASF logo on the signpost on the company's building
BASFA expressed shock on Thursday with announcement of large-scale job reduction. But if the chemical company is not working, then its long-running business model can be history soon.
EIt was in the air. In a conversation with FAZ, BASF CEO Martin Brudermiller recently suggested that if his company becomes more efficient, then at least employees will be required. Now it is clear what it means: By 2021, the group will cut 6,000 of its workforce from around 120,000 jobs.
Half of those in Germany, especially at the Ludwigshagen Group headquarters This step is not surprising: for some time BASF is behind its ambition. The world's largest chemical company is growing at a slower pace than the chemical industry. Investors' representatives have certified the executive board on the annual general meeting and the profitability problem – a warning shot, which should not be overlooked.
Brüdermler began to change something, to break the crusted structures, to make the cumbersome group faster and more efficient. If it does not work anymore, the long-successful business model of the Integrated Chemicals Company can be history soon.
Rival Bearer shows which activists can achieve what employees have. There, the American hedge fund Elliott has to play only with the idea of break-up and the stock is already growing. So far, BASF does not want to let him come before.