Annual savings of 300 million euros! Chemical giant Wacker cuts 1,600 jobs in Germany

On May 8, 2026, Wacker Chemie officially announced the continued implementation of the PACE global cost-saving and efficiency improvement program. Launched in October 2025, the program aims to reduce costs by over 300 million euros annually to consolidate the company's long-term market competitiveness. The plan also includes global workforce structure optimization measures.

In its domestic German market, Wacker management has reached a consensus with employee representatives to optimize approximately 1,600 positions. This reduction will be conducted entirely through a voluntary exit mechanism, supported by generous phased early retirement policies and severance agreements. Meanwhile, all employees in Germany will temporarily pay a solidarity contribution through 2028, reducing working hours and salaries by 4% to create financial buffer space and completely avoid forced layoffs. According to the timeline, all structural adjustment measures under the PACE plan will be fully implemented by the end of 2027.

Wacker CEO Christian Hartel stated that reaching this labor agreement is a key step in the transformation, upgrading, and enhancement of core competitiveness for the German business. The company has previously implemented numerous reforms at overseas plants, effectively improving production flexibility, operational efficiency, and responsiveness. These optimization models are now being formally rolled out in the German domestic market.

Regarding the distribution of job cuts, Wacker's global largest production base, the Burghausen plant, will optimize 1,300 positions; the Nünchritz production base will optimize 200 positions; the Munich headquarters will optimize 60 positions; and other German production bases will optimize a total of 50 positions. The total scale aligns with the previously finalized plan.

This personnel and structural optimization is advanced simultaneously based on a detailed implementation plan agreed upon by labor and management, covering multiple structural measures such as the integration of production facilities, flexible shift mechanisms, and the transfer of some operations to international service centers.

Wacker HR Director Angela Wörl noted that the company and employee representatives have jointly formulated comprehensive implementation guidelines. This ensures the steady progress of structural reforms in Germany while balancing social responsibility and achieving a smooth transition. This adjustment will strengthen Wacker's international competitive advantage in its German business and lay a solid foundation for future profit growth.