Bayer Cuts Jobs in Restructuring Effort

Bayer plans to restructure in order invest its resources in growing the company and enhancing its capabilities. The focus will be on R&D and marketing new products, particularly in HealthCare and CropScience, as well as expanding activities in emerging markets. As a result, the company will reduce its global headcount of 108,700 by approximately 2,000 by 2012. In total 4,500 positions, including 1,700 in Germany will be cut, while 2,500 new jobs will be created over the same period, particularly in emerging markets.

The company expects cost savings of $1.1 billion starting in 2013, of which half will be reinvested. By the end of 2012 the company is likely to take one-time charges of about $1.4 billion, with part of this amount incurred in 4Q10.

“Bayer has great business potential in all three subgroups. To better exploit this potential, we must continue to bundle existing resources and streamline our structures. That is the only way we can sustainably finance our investment in growth and innovation – for example in new pharmaceutical products, in our BioScience business and in the expansion of our capacities in Asia,” said Bayer AG chairman Dr. Marijn Dekkers. “The cutbacks involved will not be easy, but they are necessary. I am convinced that with more innovation and less administration, Bayer can become a better and faster company.”