In a rare labour pact, this firm commits to no compulsory job cuts until 2028

BASF has signed an agreement to refrain from compulsory job cuts at its flagship Ludwigshafen, Germany site until the end of 2028, securing a period of employment stability at the heart of the German chemicals group as it undergoes a wider restructuring.

The agreement, reached after months of negotiations with employee representatives, will apply from January 1, 2026, to December 31, 2028, BASF said in a statement on Monday. Reuters reported that the deal rules out forced redundancies at the site during this period and could be extended by a further two years if profitability targets are met.

The Ludwigshafen complex, BASF’s headquarters and largest production site, employs more than 30,000 people, accounting for roughly a third of the company’s global workforce. A previous job security agreement is due to expire at the end of this year.

Under the new arrangement, BASF has also committed to investing around €2 billion annually at the site to modernise infrastructure, expand capacity and support its long-term sustainability transition, according to the company.

“The new site agreement is the result of constructive negotiations between management and employee representatives,” board member Katja Scharpwinkel said in a statement carried by Reuters. She added that the deal provides the flexibility needed to implement changes while supporting efforts to restore competitiveness at Ludwigshafen.

The works council described the talks as difficult but ultimately worthwhile. Sinischa Horvat, chairman of the site’s works council, said the agreement was “by no means a foregone conclusion” given the company’s ongoing structural and economic challenges, Reuters reported.

The labour accord comes as BASF’s chief executive Markus Kamieth presses ahead with an extensive overhaul of the group. The company plans to divest certain businesses and list its agricultural division in 2027, while also cutting shareholder dividends for the first time since 2010.

At the same time, BASF is expanding internationally. The group plans to officially open a new site in China next year following investments of about €8.7 billion, underscoring a strategic shift even as it seeks stability at home.

For employees at Ludwigshafen, the agreement provides breathing room until at least 2028. For BASF, it buys time to execute a complex transformation while attempting to balance cost discipline, investment and labour relations in a challenging market.