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Further the company has also terminated the share buyback program ahead of schedule.
BASF has announced that it would cut 2,600 jobs. The job cuts will happen mainly in Europe due to a continued decline in company’s earnings as a result of high costs in Europe and uncertainty in the energy market due to the war in Ukraine and rising interest rates.
According to a statement issued by the German chemicals giant on Friday, 2023 earnings before interest and tax (EBIT), adjusted for special items, will drop to between 4.8 billion euros ($5.09 billion) and 5.4 billion, down 11.5% from 6.9 billion in 2022.
In October last year, BASF announced plans to cut annual costs in Europe by 500 million euros, resulting in about 2,600 job cuts, 65 percent of which will be in Germany.