BASF is signaling a clear vote of no confidence in the German economic landscape, continuing a trend of relocating portions of its operations abroad. The chemical giant now plans to move hundreds, potentially thousands, of administrative roles to India, a move that has already drawn sharp criticism from labor unions and political figures.
The move, announced on February 11, 2026, is the latest step in BASF’s ongoing effort to enhance its long-term cost competitiveness and resilience, according to a company press release. The company intends to consolidate its Finance and HR services into a new global hub in India. This decision reflects a broader industry trend of seeking more efficient operational structures in a challenging global economy.
Supply chain-related services will be consolidated at the existing hub in Kuala Lumpur, Malaysia. Activities requiring close proximity to local sites will remain regionally or locally based. “With this step, we plan to systematically further develop the Global Business Services area in order to support our corporate strategy with the most competitive service structures possible,” said Dr. Dirk Elvermann, BASF’s Finance Director and Chief Digital Officer.
The shift involves consolidating the competencies of BASF Services Europe in the new Indian hub. This decision reverses a 2005 agreement with the IGBCE union, which had secured the consolidation of BASF’s internal service functions in Berlin, Germany, rather than outsourcing them to the Czech Republic, according to reports. The IGBCE has already announced its strong opposition to the current plan.
BASF, one of Germany’s largest industrial companies, has been undergoing a restructuring process in recent years, evaluating all aspects of its business. The company sold a division to a U.S. Investor at the end of 2025. The move to India underscores the company’s commitment to streamlining operations and reducing costs in a competitive global market. The scale of the job displacement remains uncertain, but the potential impact on the German workforce is significant.
