Archive · 16 Dec 2025
BASF Secures No-Layoffs Deal Until 2028
BASF, a big German chemical company, has made a deal with its workers.
They promised no forced layoffs until 2028.
In return, BASF will spend €1.5 billion every year to improve their biggest factory in Ludwigshafen.
This factory has over 30,000 workers.
The company is facing some tough times, like high costs and less demand for their products.
But they are also making changes to become more competitive.
They are even planning to open a new factory in China.
The workers and the company both think this deal is good because it gives job security and helps the company grow.
BASF agrees to avoid mandatory layoffs at Ludwigshafen until 2028, extendable to 2030 if profitability targets are met.
The company will invest €1.5 billion annually to upgrade infrastructure and increase production capacity.
The agreement was finalized after months of negotiations with employee representatives and will be in force from January 2025 to December 2028.
Ludwigshafen is BASF's headquarters and largest production hub, employing over 30,000 workers.
The deal comes amidst economic challenges in the German chemical sector, including high energy costs and subdued demand.
- Who
- BASF and its employee representatives
- What
- Agreement to avoid mandatory layoffs and invest €1.5 billion annually
- When
- From January 2025 to December 2028 (extendable to 2030)
- Where
- Ludwigshafen, Germany
- Why
- To upgrade infrastructure, increase production capacity, and advance sustainability goals amidst economic challenges
- Company
- BASF (Badische Anilin- und Sodafabrik)
- Investment
- €1.5 billion annually
- Duration
- 2025-2028 (extendable to 2030)
- Location
- Ludwigshafen, Germany
- Employees
- 30,000+ at Ludwigshafen
- Challenges
- Subdued demand, high energy costs, supply chain issues, economic slowdown, tariffs
- Restructuring
- Divestments, public listing of agricultural division in 2027, reduced dividends
- New Site
- China (inauguration in 2025, €8.7 billion investment)