BASF to cut 3,700 jobs
The German chemical company will cut jobs after acquiring Swiss unit Ciba.Frankfurt -- The German chemical giant BASF said Monday it would cut 3,700 jobs by 2013 under a restructuring following its acquisition of the Swiss group Ciba.
"The restructuring plans include a reduction of approximately 3,700 positions by 2013, most of which will be eliminated by the end of 2010," a BASF statement said.
The group was considering the reorganisation, sale or closure of 23 of the 55 former Ciba production sites worldwide, and planned to make a decision by early 2010, it added.
BASF, which acquired Ciba in April for EUR 3.8 billion (CHF 5.8 billion, USD 5.3 billion), hopes to save EUR 300 million by the end of 2010 and estimated the benefits of the acquisition at around EUR 400 million a year starting in 2012.
It put the cost of integrating Ciba into its operations at EUR 550 million, of which EUR 150 million would be spent in 2009.
The chemicals sector was especially hard hit by the global economic downturn, and BASF warned in late April of huge challenges still to come.
It reported a 68 percent drop in first quarter net profit to EUR 375 million and like many companies, has not given a detailed outlook for 2009 earnings.
BASF said at the time that it would eliminate at least 2,000 posts by the end of 2009.
Several activities were to be maintained around Ciba's base in Basel, Switzerland, however, including BASF's new paper chemicals division and a research centre, the statement said.
AFP / Expatica