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BASF, a German chemicals giant, is set to cut 2,600 jobs.
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The company will also halt its share buybacks due to high costs in Europe, uncertainty caused by the war in Ukraine, and rising interest rates.
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BASF predicts that its 2023 earnings before interest and tax (EBIT) will fall to between 4.8 billion euros and 5.4 billion euros from 6.9 billion euros in 2022.
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The company plans to cut annual costs in Europe by 500 million euros, which will translate into about 2,600 job cuts.
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The job cuts will primarily affect administrative and research positions.
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BASF will also stop production on several production lines, including one of two ammonia plants in Ludwigshafen.
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The company will stop its production of caprolactam used in engineering plastics and textile fibers, using instead a production line in Belgium.
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BASF’s share buyback program, with 3 billion euros earmarked early last year, will be stopped early after 1.4 billion euros spent on own shares due to “profound changes in the global economy”.
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The natural gas prices in Europe remain above historic averages after last year’s peak of over 340 euros.
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BASF last month announced a 7.3 billion euro writedown for 2022 on the value of its Wintershall Dea energy business.