BASF slashes costs by 20% in bold Core Shift restructuring plan
BASF has launched one of its largest cost-cutting programmes in history, named Core Shift. The initiative aims to reduce fixed costs in its core business by up to 20% by 2029. CEO Markus Kamieth described the move as a major step in optimising the company’s operations.
The Core Shift programme has been part of BASF’s strategy since 2024. It focuses on streamlining and standardising the company’s core operations, which generate around €40 billion in annual revenue. The target is to cut cash-effective fixed costs by a fifth compared to 2024 levels.
A large share of the savings will come from reducing personnel expenses. The programme is expected to result in a leaner workforce, with further job cuts on the horizon. However, the company has clarified that the initiative is not a reaction to fears of an economic downturn.
By 2029, BASF plans to have a more efficient core business with lower operating costs. The restructuring will focus on simplifying processes and reducing staff numbers. The company has framed the programme as a long-term strategy rather than a short-term financial fix.
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