German chemical company Wacker will cut 1.500 jobs by 2027

German chemical company Wacker announced on Thursday, November 27, that it will cut more than 1.500 jobs by 2027, mainly in Germany, a new social plan for the sector mired in a historic crisis, between high energy costs and global overcapacity.

The Munich-based group will reduce its workforce by nearly 10%, from approximately 16.600 worldwide, including 10.800 in Germany.

According to a press release, this will allow the company to achieve half of the savings it hopes for, amounting to 300 million euros per year "in the future".

"The goal is to reduce our costs to a competitive level through these savings. This will allow Wacker to get back on the path to success," said the group's chairman, Christian Hartel, in a statement.

At the Frankfurt Stock Exchange, around 12:00 GMT, investors were rewarding Wacker Chemie shares, up 1,68% in the MDax index of mid-cap stocks, which was up 0,68%.

This is a new social plan for the German chemical industry, whose production levels are at their lowest in 30 years according to the VCI federation.

Industry giants like BASF are suffering from global overcapacity, mainly in China, and declining demand.

"Particularly in Germany, excessively high energy prices and bureaucratic obstacles continue to act as a significant brake," adds Mr. Hartel.

In the third quarter, the group indicated that it expected a net loss in 2025, after having generated a profit of 261 million euros the previous year.

The job cuts will begin in the first quarter of 2026 and will be completed by the end of 2027, according to the group.

When contacted by AFP, the IGBCE union did not immediately respond.

Wacker manufactures chemicals with multiple industrial applications, from adhesives to cosmetics and photovoltaic cells, and also develops biotechnologies.

Its main clients are in the automotive, construction and semiconductor industries.