Bayer AG, the pharmaceutical giant, has decided to reduce its team size by about 1500 positions. The news came after the company unveiled its financial performance for the first quarter of 2024.
As per media reports, the job cuts will predominantly affect individuals in management roles.
This restructuring initiative coincides with a slight dip in sales and a revised earnings outlook for the fiscal year ahead. Bill Anderson, CEO, Bayer, clarified during a media briefing on 14 May that nearly two-thirds of the job cuts affected managerial positions across Bayer’s pharmaceuticals, crop science, and consumer health divisions.
Anderson emphasised that this downsizing effort aligns with Bayer’s objective to achieve €500 million ($540 million) in sustainable cost savings by 2024 and €2 billion ($2.16 billion) by 2026.
Since taking the helm at Bayer in June 2023, Anderson has been steering the company away from the ramifications of its $66 billion Monsanto acquisition in 2016.
In January 2024, Anderson introduced a new operational model, termed Dynamic Shared Ownership, aimed at enhancing efficiency and reducing bureaucracy within Bayer. This comprehensive restructuring includes the ongoing workforce cuts scheduled over the next decade, starting from 2025. Since March 2024, Bayer has notably streamlined its executive team to eight members, marking a significant reduction from the previous count of 14.
The announcement follows Bayer’s reported sales of over $14.86 billion for the quarter, reflecting a 4.3 per cent decrease compared to the same period last year. However, when adjusted for currency and portfolio changes, the year-over-year sales decline was a modest 0.6 per cent.
