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 

Expected cost savings by the end of 2024