By: ICN Bureau
Last updated : January 23, 2021 8:30 am
With these measures, cost savings of more than €200 million annually should be realized as of 2023.
BASF is now entering the implementation stage for the realignment of its services unit announced in September 2020 for cost savings of €200 million annually.
A large share of the services provided by employees of Global Business Services to BASF’s business units are being bundled in hubs. These hubs will be located at the existing BASF shared service centers in Berlin, Germany; Kuala Lumpur, Malaysia, and Montevideo, Uruguay.
Once these responsibilities have been bundled, processes will be further harmonized and standardized to achieve additional efficiencies. To this end, the Global Business Services unit will also implement a comprehensive digitalization strategy.
With these measures, cost savings of more than €200 million annually should be realized as of 2023.
As previously announced, the number of positions in the Global Business Services unit will decline by up to 2,000 worldwide, including around 600 positions at the Ludwigshafen site. The unit was established as of January 1, 2020, as part of the implementation of BASF’s corporate strategy. As of that date, around 8,400 employees worldwide transferred to Global Business Services.