(Boursier.com) — The German group BASF plans to cut 2,600 jobs, mainly in Europe, and has warned of a further decline in its profit this year due to high costs in Europe, rising interest rates and the uncertainty created by the war in Ukraine for a year… The German chemical giant expects to see its earnings before interest and taxes (Ebit) return to between 4.8 billion euros and 5.4 billion in 2023. Last year, Ebit has already fallen by 11.5%, to 6.9 billion.
BASF, which last October presented plans to cut annual costs of 500 million euros in Europe, said that this would result in the loss of some 2,600 jobs, including around 65% in Germany.
The share buyback programme, with 3 billion euros planned at the beginning of last year, will be stopped earlier than planned after 1.4 billion euros spent on treasury shares due to “profound changes in the global economy,” explained BASF. The German group last month announced a writedown of 7.3 billion euros for 2022 on the value of its energy business Wintershall Dea, which is withdrawing from Russia.
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