Bayer cut 12000 jobs; exit animal health business

Bayer to cut 12000 jobs; exit animal health business

7:37 AM, 30th November 2018
Bayer logo

LEVERKUSEN, US: Bayer plans to exit animal health business, consumer health brands Coppertone and Dr Scholl’s, and cut 12,000 jobs worldwide. The company also plans to sell its 60 percent interest in Currenta, a JV with Lanxess.

The company aims to strengthen its core life science businesses following the takeover of Monsanto.

The job cuts are expected to be complete by the end of 2021 and a significant number of them is in Germany, the company said.

The job cuts will include approximately 900 jobs in pharmaceuticals R&D and around 350 positions in connection with the factor VIII facility in Wuppertal; roughly 1,100 jobs associated with the reorganization at consumer health; around 4,100 positions at crop science as the result of combining Monsanto; and a further 5,500 to 6,000 jobs in the corporate functions.

In addition to the planned portfolio measures, Bayer said that it intends to significantly improve its cost structure. The company aims to further strengthen innovation and productivity, to accelerate access to future technologies, and to further enhance competitiveness and profitability. In this context, the company will seek to achieve greater efficiency across its supporting functions and services.

Including the synergies expected from the acquisition of Monsanto, Bayer anticipates annual contributions of €2.6 billion from 2022 on as a result of its planned efficiency and structural measures.

“We have made very good progress with Bayer’s strategic development in recent years. As we now proceed with these measures, we are laying the foundation to sustainably enhance Bayer’s performance and profitability. With these measures, we are positioning Bayer optimally for the future as a life science company,” said Werner Baumann, chairman of the board of management of Bayer AG.

“Through the end of 2022 alone, we aim to invest a total of around 35 billion euros in our company’s future, with research and development (R&D) accounting for over two thirds of this figure and capital expenditures for just under one third,” added Baumann.

“These changes are necessary and lay the foundation for Bayer to enhance its performance and agility. With these measures, we aim to take full advantage of the growth potential for our businesses. We are aware of the gravity of these decisions for our employees. As in the past, we will implement the planned measures in a fair and responsible way,” said Baumann.

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