Chemical slump deepens: Wacker Chemie to cut 1,500 jobs; German sector hit by high energy costs and weak demand
The company said most of the reductions will take place in Germany, with the process to be completed by the end of 2027, according to AFP.The job cuts form part of a broader plan to save more than 300 million euros ($348 million) annually.
Wacker employs around 16,600 people worldwide, most of them based in Germany.
Its customer base spans the automotive, construction and semiconductor sectors — all of which have been hit by slowing demand and rising competition.Shares of Wacker Chemie rose nearly 2 percent in Frankfurt after the announcement.Chief executive Christian Hartel said the operating environment for chemical firms in Germany needed urgent improvement.
“The excessively high energy prices and bureaucratic obstacles continue to act as a central brake on the successful development of the chemical industry,” he said.The company had reported a net loss of more than 80 million euros in the third quarter, citing weak demand and mounting competition, particularly from China.Earlier this month, Germany’s VCI chemical industry association warned that production in the sector had slipped to a three-decade low, reflecting the broader strain on traditional industries as the country struggles to emerge from two years of recession.
