BASF Job Cuts 2026: Severance Pay & Your Rights

BASF job cuts 2026 in numbers

In short: around 7,000 jobs cut worldwide from early 2024 to the end of June 2026, about two-thirds in Germany, concentrated in Ludwigshafen. There, the number of full-time positions fell below 30,000 in May 2026, for the first time since 1954. Operational dismissals at the site are ruled out until the end of 2028, the cuts run through partial retirement, early retirement and termination agreements.

• Pace: In the first half of 2026 alone, more jobs were cut than in the two previous years combined (Handelsblatt, 29 July 2026).
• Currency of data: This is the most recent reliable status (cut-off end of June 2026). BASF had not published a newer official figure for Ludwigshafen by October 2026.
• Savings target: Costs in Ludwigshafen are meant to fall by around one billion euros by the end of 2026.
• What this means for you: With no pressure of dismissal, you don’t have to accept an offer. Because BASF still has to hit its targets, it’s paying for voluntary exits, which gives you a stronger negotiating position. Calculate a reference value using the rule of thumb, then have your offer reviewed.

Job cuts at BASF: what’s happening right now?

From early 2024 to the end of June 2026, BASF cut around 7,000 jobs worldwide, about two-thirds of them in Germany, concentrated at the main Ludwigshafen site. In the first half of 2026 alone, more jobs were cut than in the two previous years combined; the number of full-time positions in Ludwigshafen fell below 30,000 in May 2026 for the first time since 1954 (Handelsblatt, 29 July 2026). The cuts are happening through voluntary instruments, partial retirement, early retirement and termination agreements, rather than forced dismissals.

Your rights: social plan, termination agreement, protection against dismissal

For an operational change of this scale, the employer has to negotiate a social plan (Sozialplan) with the works council (Betriebsrat) (§§ 111, 112 BetrVG). It governs compensation for economic disadvantages, such as severance pay, partial retirement and transfer arrangements. If an operational change is carried out without the employer having attempted to reach an agreement of interests (Interessenausgleich) with the works council, a disadvantage compensation (Nachteilsausgleich) may come into play (§ 113 BetrVG). A social plan only sets a framework though: an individually offered termination agreement can fall below or above it and is negotiable.

If an operational dismissal does happen later, the strict three-week deadline applies: an unfair dismissal claim (Kündigungsschutzklage) must reach the labour court within three weeks of receiving the dismissal notice (§ 4 KSchG). After that, the dismissal counts as effective, however questionable it was. With a large employer like BASF, this claim is often exactly the leverage that makes negotiating severance pay possible in the first place.

Protection against dismissal in Ludwigshafen until 2028: what it means for you

In December 2025, BASF and the employee representatives signed a new site agreement, “Shaping the Future for a Strong Site” (“Zukunft gestalten für einen starken Standort”). It runs from 2026 to the end of 2028, rules out operational dismissals at the Ludwigshafen site for its duration, and automatically extends by two years to the end of 2030 if profitability targets are met (BASF press release).

For those affected, that means you’re not under pressure to leave, and you don’t have to accept a termination offer. Because BASF still needs to deliver the cuts, it’s paying for voluntary exits. That’s your negotiating position. An offer that looks “generous” isn’t automatically the maximum on the table, so it’s worth having it checked.

Received a BASF offer? Check it before you sign

What needs checking: the amount relative to your age, length of service and chances of success in a claim, the benefit suspension risk (Sperrzeit) for unemployment benefit (§§ 158, 159 SGB III), the waiver and settlement clauses (bonuses, variable pay, company pension), and the tax treatment, since with larger packages the timing of payment determines how the one-fifth rule applies. Upload your document and we’ll flag the critical points, at no cost.

For context by length of service, we’ve put together a separate page on how 20 years of service feeds into the calculation.

How it works with us

A free initial consultation, assessment of your offer by our specialised partner law firm, and if you instruct us, negotiation funded through litigation financing, with no upfront financial risk for you. Here’s how the cost model works.

Note: Team Abfindung is an independent provider and has no connection to BASF SE.