Bayer AG, a pharmaceutical giant, plans to reduce its workforce by approximately 1500 positions. The decision follows the company’s financial performance announcement for the first quarter of 2024. According to media reports, the job cuts will mainly impact individuals in management roles.
This restructuring effort coincides with a slight decline in sales and a revised earnings outlook for the upcoming fiscal year. CEO Bill Anderson stated during a media briefing on May 14 that nearly two-thirds of the job cuts will affect managerial positions across Bayer’s pharmaceuticals, crop science, and consumer health divisions.
Anderson emphasized that this downsizing aligns with Bayer’s goal to achieve €500 million ($540 million) in sustainable cost savings by 2024 and €2 billion ($2.16 billion) by 2026. Since assuming leadership at Bayer in June 2023, Anderson has been steering the company away from the impacts of its $66 billion Monsanto acquisition in 2016.
In January 2024, Anderson introduced a new operational model called Dynamic Shared Ownership, aimed at improving efficiency and reducing bureaucracy within Bayer. This comprehensive restructuring includes ongoing workforce cuts scheduled over the next decade, starting from 2025. As of March 2024, Bayer has notably streamlined its executive team to eight members, down from the previous count of 14.
The announcement comes after Bayer reported sales of over $14.86 billion for the quarter, reflecting a 4.3% 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%.
