Germany's Wacker Chemie cuts 1,500 jobs, citing high energy costs

Munich-based Wacker Chemie announced on Thursday that it plans to cut 1,500 jobs as part of attempts to save €300 million ($350 million) a year in the face of severe losses and high energy costs.

The chemicals company has around 16,600 staff worldwide with around 10,700 in Germany. Most of the job cuts are to fall on its German operations.

Wacker posted a net loss of almost €105 million for the first nine months.

"We are currently working on measures to achieve our cost-saving targets," chief executive Christian Hartel said. "The aim is to reduce our costs to a competitive level through savings," he added.

Hartel expressed criticism of business conditions in the company's home market. "Particularly in Germany, the excessively high energy prices and bureaucratic obstacles continue to act as a central brake on the successful development of the chemical industry," he said.

The chemicals sector is highly energy-intensive. According to company information, Wacker consumes almost 1% of all electricity in Germany, even though it is not a particularly large company.

Wacker Chemie is the largest supplier of polysilicon for the international chip sector. It also produces polymers for the construction sector and biotech products. Its largest plant is at Burghausen on the German border with Austria.