(Reuters) -German chemical company Wacker Chemie said on Thursday it would cut more than 1,500 jobs by 2027 under a cost savings programme it announced last month. The group said in a statement it was
Wacker Chemie Announces Over 1,500 Job Cuts Due to Energy Costs
(Reuters) -German chemical company Wacker Chemie plans to cut around 9% of its workforce, mostly in Germany, by the end of 2027, it said on Thursday, blaming high energy prices and excessive bureaucracy in Europe's biggest economy.
Wacker, which had announced a cost savings programme last month but gave no details, said it aims for annual savings of more than 300 million euros ($347 million) and will implement the scheme from the first quarter of 2026 up to the end of 2027.
More than 1,500 job cuts globally, mostly in Germany, are expected to contribute about half of the planned savings per year, it said.
"Particularly in Germany, the excessively high energy prices and bureaucratic obstacles continue to act as a major brake on the successful development of the chemical industry," said CEO Christian Hartel.
Wacker Chemie has been facing weak demand and heightened competition from Chinese producers.
Last month it lowered its full-year sales and core profit outlook, citing soft demand and competitive pressure from China.
The German chemicals sector, the country's third-largest, has been struggling with subdued demand, high energy costs, supply chain issues and an economic slowdown, with U.S. President Donald Trump's tariffs adding to the pressure.
This has weighed on industry sentiment, with Germany's VCI chemicals lobby not expecting a recovery before 2026 despite indications that the downturn in the chemical-pharmaceuticals sector may have bottomed out.
Wacker had 16,637 employees in 2024.
Shares jumped by around 1.6% after the announcement but have since pared their gains.
($1 = 0.8637 euros)
(Reporting by Simon Ferdinand Eibach and Christina AmanWriting by Simon Ferdinand Eibach and Madeline Chambers Editing by Ludwig Burger and Keith Weir)
