Bayer Plans to Reduce 2,000 Jobs Worldwide by the End of 2012
Bayer plans to invest its resources even more systematically in growing the company and enhancing its innovative capability. The focus will be on researching, developing and marketing new products, particularly in HealthCare and CropScience, and on expanding activities in the emerging markets. This will require a high level of investment in the coming years. However, sales and earnings are under pressure from generic products, rising development costs and the effects of health care reforms. "To finance the expansion of our growth activities, we therefore need to redirect resources, improve efficiencies and cut costs," explained Bayer AG Management Board Chairman Dr. Marijn Dekkers.
To raise investment in further growth, annual cost savings of €800 million are planned starting in 2013. About half of this amount is to be reinvested. By the end of 2012 the company is likely to take one-time charges in the region of €1 billion, with part of this amount already being incurred in the fourth quarter of 2010.
In connection with this program, it is planned to reduce the global headcount of 108,700 by an aggregate of about 2,000 by 2012. Approximately 4,500 positions - including roughly 1,700 in Germany - are to be cut, while some 2,500 new jobs will be created over the same period, particularly in the emerging markets.
