Chemical giant BASF announced a major overhaul of its Global Business Services operations, shifting key Finance and Human Resources hubs to India in a bid to strengthen “long-term cost competitiveness,” even as the plan raises worries about job losses in Europe.
The company said the restructuring will centralize and expand services in India, where operational costs are lower and talent pools for back-office functions are growing rapidly. BASF’s move is part of a broader trend among multinational corporations seeking efficiency gains by realigning service centres in regions with cost advantages.
BASF said the reorganization will affect its Global Business Services units, which support corporate functions including financial planning, accounting, reporting, payroll and HR services across its global operations. Leadership described the shift as crucial for maintaining competitiveness amid economic pressures, technological change and industry cost benchmarks.
However, labour representatives and employee groups in Europe have expressed concern about the potential impact on jobs in Germany and other countries where these hubs have historically been based. Some European unions warned that relocating functions to India could mean layoffs or reduced headcount for workers who currently perform these roles.
Company officials say they will follow local legal processes and consult with employee bodies where required, and that they aim to manage the transition in a way that mitigates social impact. BASF also noted that certain strategic, high-value functions will remain in Europe even as transactional and support tasks are moved.
Analysts say the shift reflects broader global business service trends, with corporations increasingly leveraging locations in Asia for shared service centres to reduce costs and tap skilled workforces. India, in particular, has become a major hub for financial and HR services for multinationals, owing to its large talent pool and competitive cost structures.
BASF’s announcement comes amid a period of industry restructuring, as chemical and industrial firms face margins pressure from energy costs, supply chain shifts and slower global demand. By optimizing its service delivery model, BASF aims to free up resources for strategic investments and innovation.
The company has not yet disclosed specific timelines or the number of roles that may be affected, but said it will provide updates as plans progress. Workers’ councils in Europe have called for transparency and safeguards as discussions continue.