Wacker Chemie to Cut 1,500 Jobs Amid High Energy Costs and Industry Challenges

Wacker Chemie, a major German chemical company, has announced plans to reduce its workforce by 1,500 jobs over the next two years, primarily impacting its Burghausen site in Bavaria. Burghausen, which employs over 8,000 people and produces polysilicon for semiconductors, is facing significant difficulties due to soaring energy prices and bureaucratic hurdles that strain the German chemical industry.

Christian Hartel, Wacker Chemie's CEO, emphasized that the company aims to lower costs to remain competitive amidst high energy expenses, which are markedly higher in Germany compared to countries like China and the United States. This burden has been identified as a critical obstacle to the industry's growth and sustainability. Despite these issues, Wacker recently invested approximately 300 million euros in a new high-purity silicon production line at its Burghausen facility, supported by 46 million euros in state and EU subsidies, and even created 150 new jobs during this expansion.

The company had faced losses during the third quarter and now holds a pessimistic outlook for the full year due to weak economic conditions and increasing competitive pressures. Additionally, the Bavarian chemical sector, which consumes about 1% of Germany’s electricity, faces pressures to upgrade its infrastructure to adapt to energy transitions away from fossil fuels.

The Bavarian Chamber of Industry and Commerce has called for immediate governmental intervention, warning that German industry is losing roughly 10,000 jobs monthly, with 2,000 of these in Bavaria alone. The chamber stresses the urgent need for structural reforms to prevent further job losses and stabilize the industry.

Wacker has initiated a cost-saving program but has not disclosed detailed plans. The company’s leadership continues to focus on adapting to a challenging environment marked by high energy costs and regulatory obstacles, which severely impact the competitiveness of the German chemical sector.