Wacker Chemie plans to cut around 9% of its workforce, mostly in Germany, by the end of 2027, the company said in a statement. Wacker blames high energy prices and excessive bureaucracy in Europe’s biggest economy.

Wacker, which had announced a cost savings program last month but gave no details, said it aims for annual savings of more than 300 million euros ($347 million) and will implement the scheme from the first quarter of 2026 up to the end of 2027.

More than 1,500 job cuts globally, mostly in Germany, are expected to contribute about half of the planned savings per year, says Wacker.

“Particularly in Germany, the excessively high energy prices and bureaucratic obstacles continue to act as a major brake on the successful development of the chemical industry,” says CEO Christian Hartel.

Wacker Chemie has been facing weak demand and heightened competition from Chinese producers, as well. Last month it lowered its full-year sales and core profit outlook, citing soft demand and competitive pressure from China.

The German chemicals sector, the country’s third-largest, has been struggling with subdued demand, high energy costs, supply chain issues and an economic slowdown, with US President Donald Trump’s tariffs adding to the pressure.

Wacker had 16,637 employees in 2024. Shares jumped by around 1.6% after the announcement but have since pared their gains.