BASF Launches CoreShift Strategy to Strengthen Core Businesses and Reduce Costs

BASF announced on May 20 that the company is entering the next phase of its “Winning Ways” strategy by strengthening and expanding its core businesses through a large-scale transformation initiative. The company established a new Core Transformation Office that will oversee and coordinate transformation activities across its core business units, service operations, and corporate center divisions. Through this initiative, BASF intends to improve operational efficiency while simplifying organizational structures and streamlining internal business processes across global operations.

The transformation program, introduced under the name “CoreShift,” is designed to deliver up to 20% net cash fixed cost savings in BASF’s core businesses by 2029 when compared with the 2024 baseline. According to the company, the initiative expands on existing efficiency measures while introducing a more integrated and globally coordinated transformation model. BASF stated that the new approach focuses on cross-unit collaboration to improve consistency, operational alignment, and cost optimization across multiple business functions.

Key Areas of BASF CoreShift Transformation Program

The CoreShift strategy includes several operational and technology-focused measures aimed at supporting long-term efficiency improvements. BASF plans to simplify operations and organizational structures while implementing globally harmonized business processes across its divisions. The company also intends to deploy standardized IT solutions supported by a dedicated ERP system developed specifically for its core businesses. In addition, BASF highlighted the growing use of artificial intelligence technologies across the BASF Group as one of the major enablers supporting transformation and productivity enhancement initiatives.

CoreShift Program Targets and Focus Areas

The following table outlines the primary objectives and transformation areas announced under the CoreShift program.

BASF emphasized that CoreShift will function as a global transformation framework extending across multiple operational units within the company. The strategy combines organizational restructuring, digital transformation, and technology adoption to support long-term competitiveness and financial performance. By integrating standardized systems and increasing AI utilization, BASF aims to create more efficient workflows while supporting future growth opportunities in its core businesses. The company indicated that the transformation process will continue progressively through 2029 under the supervision of the Core Transformation Office.

Frequently Asked Questions

What is BASF’s CoreShift program?
The CoreShift program is BASF’s global transformation initiative designed to strengthen and optimize its core businesses through operational simplification and cost-saving measures. The program is managed by the newly established Core Transformation Office and focuses on cross-unit collaboration across core businesses, service units, and corporate functions. BASF plans to implement harmonized business processes, standardized ERP systems, and increased AI integration to improve efficiency while targeting up to 20% net cash fixed cost savings by 2029 compared with the 2024 baseline.

What are the main goals of BASF’s Winning Ways strategy expansion?
BASF aims to improve operational efficiency, reduce organizational complexity, and strengthen long-term competitiveness through the expansion of its Winning Ways strategy. The company plans to streamline operations globally by introducing standardized IT systems and unified business processes across its core divisions. BASF also intends to increase the use of artificial intelligence technologies to support productivity improvements and transformation initiatives. Through the CoreShift program, the company expects to create a more integrated and cost-efficient operating structure by 2029.