Job cutbacks at Bayer: According to the Monsanto Takeover is to be trimmed, the Dax group to more efficiency. Approximately every tenth point. The majority of the 12,000-painted Jobs are attributable to Germany.
Leverkusen-Aspirin-manufacturer-prescribed by the billion-dollar Monsanto Takeover in a reduction in the massive and the sale of parts of the company. Around 12,000 of the world’s well-118.000 jobs will be eliminated, such as in the pharmaceutical and agricultural chemical group, announced after a Supervisory Board meeting. A significant part of the cuts should meet in Germany, gave Details of the chief Executive officer Werner Baumann covered. By the end of 2025 is in this country, however, compulsory redundancies. For the business with veterinary medicine, as well as brands in the area of sun protection and foot care there will be no place in the Bayer-rich. The group wants to separate from his share of the chemical Park operator Currenta.
Bayer CEO: job losses, not because of Monsanto
The plans were not a response to the Monsanto Acquisition, said Baumann. “And, a fortiori, not to the glyphosate-lawsuits in the United States.” Bayer was the US seed giant taken over in the summer for almost 63 billion dollars. Because of the alleged carcinogenic effects of Monsanto developed a Weed killer, the group sees in the United States, with approximately 9300 plaintiffs faced. On the stock exchange, Bayer lost much of its value. There is also the one with the tag-announced write-downs in the amount of 3.3 billion euros is not as well – Bayer shares were on Thursday to the biggest losers in the Dax and went with just 64 euros. At the end of January they cost 108 euros.
Baumann stressed that the measures were “the right step” for Bayer. The group will increase its productivity and competitiveness. The job should be done removal “fair, socially responsible and with the appropriate sense of proportion”. Such as models for the departure are to be agreed in early retirement in a timely manner. The workers had agreed to the plans in the Supervisory Board – the decisions were unanimous, such as Bayer said. “The achieved protection against compulsory redundancies until the end of 2025 is a milestone,” said works Council chief Oliver Zühlke.
Bayer CEO Werner Baumann: of job losses is “not a reaction to Monsanto’s Takeover”
Veterinary medicine for sale
The roughly 12,000 jobs within three years. Of these, around 900 are attributable to the pharmaceutical research, where Baumann relies increasingly on joint developments with partners and external innovation. In addition, around 350 in Wuppertal, where an operation falls way, in the products against the blood disease hemophilia produced.
More 1100 Points attributable to the realignment of the organization in the business with over-the-counter health care products (Consumer Health), and around 4100 on the agricultural business, Crop Science, the Monsanto-Integration and a further 5500 to 6000, among other things, in the case of cross-group functions.
On a sale of the veterinary medicine had been longer speculation, even if Baumann had asserted to the contrary. Industry experts, according to the Bayer business in this area is to small to be able to in the long term, alone. Last year the area achieved a turnover of around EUR 1.57 billion – about 4.5 percent of the revenues of the total group. Analysts expect that a sale of between six and seven billion euros could bring.
The Prescription cost rate of return
In the business with over-the-counter health products, the ailing for some time, admits Baumann now. Bayer is considering how you can part with the areas of sun protection with the brand Coppertone and foot care brand Dr. Scholl’s. The 60-percent share in the chemical Park operator Currenta’m doing for Bayer, after getting the plastic manufacturer Covestro no sense.
In the fourth quarter, depreciation and amortization from the fields of Consumer Health and pharmaceuticals in the order of 3.3 billion Euro to the group – the lion’s share with around 2.7 billion out of the over-the-counter health products. With the savings program and the conversion Bayer to be more profitable. The operating return on sales (Ebitda margin) is expected to increase by 2022 to more than 30 percent. In the past year, it stood at 26.5 percent. The one-off costs through the program, the group tallied up to more than four billion euros. Analysts and Fund managers want to Bayer on 5. December at an investor conference in London about the future prospects of its business.
Concentration on the pharmaceutical and agricultural chemistry
The, founded in 1863, Bayer is one of the most tradition-rich German companies with an annual turnover of around 35 billion euros in 2017. According to its own figures, nearly 118.200 people work for the group worldwide. Long United, Bayer under its roof, the areas of chemistry, health and plant protection. However, the Dax-listed company from Leverkusen, Germany is pushing ahead with the conversion to a pure Life-Science companies. The separation of the plastic daughter Covestro 2015 served this goal, and also the 63-billion-Dollar Takeover of the US seed giant Monsanto this year. Thus, Bayer is the world’s number one agricultural chemical market rose.
tko/ rb (AP, rtr)