Bayer to cut 12,000 jobs after Monsanto takeover

BERLIN: German chemical and pharmaceutical giant Bayer said Thursday it would slash 12,000 jobs in a major restructuring following the mammoth takeover of Monsanto, enabling it to save 2.6 billion euros ($3 billion) a year from 2022.

The planned job cuts will affect about one in every ten of the group’s 118,200 posts, “a significant number of them in Germany”, said the group in a statement.

Bayer swallowed Monsanto in one of Germany’s biggest ever corporate takeovers at a cost of 63 billion euros in June.

But barely two months later, a court ruling in the US left Bayer with multi-million-dollar damages to pay as the judge found that its newly acquired subsidiary Monsanto should have warned a user about cancer risks from its herbicide Roundup.

Announcing details of the restructuring, Bayer said it planned to exit its animal health business, in order to concentrate resources on its core businesses of pharmaceuticals, consumer health and crop science.

It is also looking at letting go of its Coppertone sun care brand and Dr. Scholl’s foot care product line.

Following the tie-up with Monsanto, the group’s crop science division will be among the hardest hit by the job cuts, with 4,100 posts to go.

The company said it expected to complete trimming its headcount by the end of 2021.

“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,” said Werner Baumann, Bayer board chairman.

Investors gave a muted response to Bayer’s announcement, with shares in the group down 0.73 percent to 63.76 euros at around 1445 GMT, underperforming the DAX which was up 0.37 percent.

Investors have been nervously watching the group since the cancer ruling in the US over Monsanto’s leading product Roundup, which contains glyphosate.

Chemical campaigners and politicians in the US and Europe argue that glyphosate causes cancer, although Bayer points to scientific studies finding no connection.

In October, a San Francisco judge upheld a jury verdict that found Monsanto liable for not warning a groundskeeper that its weed killer product Roundup might cause cancer, but slashed the damages award to $78 million from the initial $289 million.

By the end of last month, the US subsidiary was facing 9,300 cases over glyphosate.

But Baumann had stuck to its confident outlook in integrating Monsanto.

He acknowledged that more lawsuits could come, but reiterated that Bayer would “defend ourselves with all means available.”

  • Related Posts

    • Pharma
    • March 27, 2024
    • 96 views
    Spurious drugs: Maiden Pharma blacklisted, all contracts cancelled

    Haryana has blacklisted Maiden Pharmaceuticals Ltd, based at Sonepat, for three years, thereby debarring the firm from participating in state tenders. All rate contracts issued to the firm have also…

    • Pharma
    • March 27, 2024
    • 66 views
    DCC Calls For Strict Implementation Of Revised Schedule M, State-Level Activities To Address AMR

    New Delhi: The Drugs Consultative Committee (DCC), the advisory committee formed by the Central government to advise the Central and state governments on matters that require uniform implementation of drug laws…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Spurious drugs: Maiden Pharma blacklisted, all contracts cancelled

    Spurious drugs: Maiden Pharma blacklisted, all contracts cancelled

    DCC Calls For Strict Implementation Of Revised Schedule M, State-Level Activities To Address AMR

    DCC Calls For Strict Implementation Of Revised Schedule M, State-Level Activities To Address AMR

    Sanofi, Cipla Join Hands To Expand Reach Of CNS Portfolio In India

    Sanofi, Cipla Join Hands To Expand Reach Of CNS Portfolio In India

    Cyberabad Police Seize 1 Kg Alprazolam, Arrest Three

    Cyberabad Police Seize 1 Kg Alprazolam, Arrest Three

    Lee Health develops natural capsule for effective Heart care

    Lee Health develops natural capsule for effective Heart care

    Medical Shop Run By Twenty20 In Kizhakkambalam Asked To Shut Down

    Medical Shop Run By Twenty20 In Kizhakkambalam Asked To Shut Down