A corporate restructure across BASF aims to reduce duplication of services across the organisation, but it is not clear how this will affect its operating divisions which include the Agricultural Solutions segment that manufactures crop protection products.
The German multinational says streamlining its administration, sharpening the roles of services and regions and simplifying procedures and processes will result in greater customer proximity, increased competitiveness and more profitable growth.
The €63 billion turnover group expects to make savings of €300 million through the programme, termed ongoing excellence, and generate €2 billion to annual earnings from the end of 2021.
While the initiative could cut up to 6,000 posts from the 122,000 strong global workforce through a streamlining of central structures and the creation of cross-functional service units to service the operational divisions. But the company will recruit in fields such as production and digitalisation to meet future growth needs.
The company also envisages a “sharper role” for its regions and countries. “These represent BASF locally and support the growth of business units with local proximity to customers,” says Dr Martin Brudermüller, chairman of the board of executive directors of BASF.