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BASF announces 2025 results and outlines job cuts amid cost-saving drive
BASF has published its 2025 financial results, revealing progress in its restructuring under the “Winning Ways” strategy. The company confirmed significant workforce reductions as part of its efforts to address market challenges and achieve EUR 2.3 billion in annual savings by 2026.
BASF has released its 2025 financial results, highlighting ongoing restructuring efforts and cost-saving initiatives as the company grapples with a prolonged downturn in the chemicals market. EBITDA before special items fell to EUR 6.6 billion, down from EUR 7.2 billion in 2024, as weaker earnings across several core businesses weighed on performance. Meanwhile, sales declined to EUR 59.7 billion, compared to EUR 61.4 billion the previous year, driven by negative currency effects.
Despite the challenging environment, free cash flow improved to EUR 1.3 billion from EUR 0.7 billion in 2024, attributed to reduced capital expenditures and portfolio optimisation. The chemicals producer proposed an unchanged dividend of EUR 2.25 per share for 2025 and continued its share buyback programme, allocating up to EUR 1.5 billion for repurchases between November 2025 and June 2026.
Job cuts and global restructuring
A key element of the company’s restructuring efforts is workforce reductions, aimed at streamlining operations and achieving greater efficiency. The company confirmed plans to cut administrative and IT jobs, with roles shifting to newly established hubs in India and Malaysia. The internal IT division, which employs approximately 8,500 people, will see significant downsizing as BASF adapts its location structures.
The company has also implemented job cuts at its historic Ludwigshafen site in Germany, the world’s largest integrated chemical complex. In total, BASF has reduced its workforce by approximately 4,800 positions in recent years and achieved a EUR 1.7 billion annual cost reduction run rate by the end of 2025.
Future outlook and portfolio shifts
Looking ahead, the chemicals producer expects EBITDA before special items to range between EUR 6.2 billion and EUR 7.0 billion in 2026. Free cash flow is forecast at EUR 1.5 billion to EUR 2.3 billion, while capital expenditures, including intangibles, are estimated to total EUR 3.4 billion.
In addition to restructuring, the company is focusing on its most profitable businesses, including plans to list its Agricultural Solutions division in Frankfurt by 2027. The coatings division has already been carved out to streamline operations further. The company also recently sold 4,400 apartments to bolster its balance sheet.
BASF’s ongoing strategic shifts, workforce adjustments, and cost-saving measures underscore its determination to maintain competitiveness amidst persistent challenges in the chemicals sector.
