Cost Savings Program
Increasing competitiveness: Together with initiatives in global service units on track to reduce annual costs by ~€1.1 billion by end of 2026
1 Annual run rate of >€300 million confirmed to be achieved by the end of 2023
2 Net effect; this figure includes new positions to be created, in particular in hubs
We are also consistently working on our cost structures to improve BASF’s competitiveness, particularly in Europe.
As announced at the end of February, we are executing a cost savings program focusing on Europe and are adapting our Verbund structures in Ludwigshafen. By the end of 2023, we will achieve the run rate of more than 300 million euros from our cost savings program with a focus on Europe as already indicated in our Q2 reporting.
By the end of 2024, we expect annual cost savings in non-production areas to reach more than 600 million euros; by the end of 2026, we anticipate savings of more than 700 million euros. These figures include measures related to Europe in the Global Business Services and Global Digital Services units.
Additional measures in these two service units in other regions will contribute a further 200 million euros. Together with the 200 million euros savings from the adaptation of the Verbund structures in Ludwigshafen, we are confident of reaching total annual savings of around 1.1 billion euros by the end of 2026.