Global
Investors
Cost Savings Program
Cost savings program with focus on Europe successfully started
- Annual cost savings of more than €500 million expected to be achieved in non-production areas by the end of 2024; roughly half of the savings to be realized at the Ludwigshafen site
- Key areas for cost savings are service, operating, research & development divisions as well as the corporate center; the focus is on Europe, particularly Germany
- Defined measures include:
- consistent bundling of services in hubs
- simplified structures in divisional management
- phase-out and rightsizing of services and activities
- re-focusing and efficiency increase of R&D activities
- Net effect on around 2,600 positions expected globally; this figure includes new positions to be created, in particular in hubs
- Expected program costs of around €400 million, including severance packages, training and qualification measures as well as relocation costs
- Employee representatives in all relevant bodies have been and will continue to be involved