The Bayer Group announces plans for a series of “efficiency and structural measures to enhance competitiveness” including a reduction of around 12,000 jobs worldwide, a significant number of them in Germany, by the end of 2021, according to the company. Bayer also reportedly plans to exit the animal health business, the consumer health brands Coppertone and Dr. Scholl’s and sell its 60% interest in Currenta, a site services provider in Germany. In a meeting on Thursday, the supervisory board of Bayer AG discussed the plans laid out by the board of management and unanimously expressed their support.
The company says it plans to cut approximately 900 jobs at pharmaceuticals in 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 integrating the Monsanto acquisition; and a further 5,500 to 6,000 jobs in corporate functions, supporting functions, business services and country platforms.
Bayer reportedly intends to exit the animal health business in 2019 and reallocate the associated investment resources to support its core businesses of pharmaceuticals, consumer health and crop science. At consumer health, Bayer will look to exit product categories that it says have more favorable development potential outside of the company including the sun care (Coppertone) and foot care (Dr. Scholl’s) product lines. Bayer is in discussions regarding the divestment of its 60% interest in German site services provider Currenta, following the carve-out of Covestro.
“As we now proceed with these measures, we are laying the foundation to sustainably enhance Bayer’s performance and profitability,” says Werner Baumann, chairman of the board of management of Bayer AG. “With these measures, we are positioning Bayer optimally for the future as a life science company.”
Bayer says it anticipates annual contribution of 2.6 billion euros from 2022 on as a result of its planned efficiency and structural measures. Bayer’s corporate strategy, financial targets and capital allocation priorities will be outlined at the Capital Markets Day in London on December 5.
For more information, visit: www.bayer.com