Chemicals maker BASF says it will drop 6,000 jobs by the end of 2021 in what it calls an "organization realignment" that aims at streamlining administration and simplifying the company's structure.

The company said in a news release that the restructuring would save 300 million euros ($340 million) as part of an ongoing efficiency program that is expected to add 2 billion euros to annual earnings from 2021 onward. The company said it aim to have smaller corporate headquarters and a stronger role for regional operations.

BASF is based in Ludwigshafen, Germany, and makes chemicals for the plastics industry, industrial materials and pigments, food and animal feed ingredients and farm chemicals. The company reported having 122,400 employees in 2018, with 75,000 in Europe and 20,000 in North America.