Bayer will reduce its workforce worldwide by 12,000 jobs by the end of 2021 in a bid to enhance its performance and profitability.
Bayer employs 118,200 people worldwide, with a significant number of jobs to go in Germany.
Jobs in its pharmaceuticals section, approximately 900 jobs in R&D and around 4,100 positions in its crop science division will go as the result of integrating Monsanto. A further 5,500 to 6,000 jobs in will go in the corporate functions sector.
Meanwhile, the company also announced that it intends to exit the animal health business and is assessing available options.
Bayer said that although this business offers growth options in an attractive market, it intends to allocate the investment resources necessary to support animal health to its core businesses of pharmaceuticals, consumer health and crop science.
Changes
These changes are two of a number of changes Bayer plans to make in the coming years.
Werner Baumann, chair of the board of management of Bayer AG, said that 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,” he said.
Shares
Assuming a constant portfolio and stable exchange rates, the company expects core earnings per share of €6.80 in 2019 (2018: €5.70 to €5.90), with a target of around €10 in 2022.
The group EBITDA margin before special items is targeted to increase to over 30% in the period through 2022, it said.