European chemical companies continue to face significant pressure from rising costs, including increases in oil and natural gas prices.

Wacker Chemie has reached an agreement with employee representatives to eliminate approximately 1,600 positions in Germany by the end of 2027.

These job cuts are part of an efficiency optimization program initiated in October 2025, which aims to achieve annual cost savings of €300 million (approximately $351.7 million). The company had previously announced plans in November of last year to reduce its workforce by more than 1,500 positions. The agreement finalized on Friday establishes the implementation framework for executing these reductions.

According to information on its official website, Wacker Chemie has a global workforce exceeding 16,000 employees.

The European chemical industry is broadly grappling with rising input costs. Oil and natural gas serve as foundational raw materials for numerous chemical products, and their sustained high prices have significantly compressed profit margins across the sector.

The company stated that the planned staff reductions will be implemented through voluntary departure programs and phased early retirement schemes, with no compulsory layoffs planned.

The breakdown of the planned job cuts is as follows:

Headquarters and largest site in Burghausen: 1,300 positions Nünchritz site: 200 positions Munich area: 60 positions Other German sites combined: 50 positions