Bayer Accelerates Managerial Job Cuts in Ongoing Transformation Efforts

Job Cuts::
Bayer has eliminated 3,200 full-time jobs, mostly managerial positions, since the start of 2024.

CEO's Strategy::
CEO Bill Anderson is implementing a new operating model called Dynamic Shared Ownership (DSO) to streamline the company's structure and enhance operational efficiency.

Cost Savings::
The layoffs aim to achieve €500 million in sustainable cost savings in 2024 and €2 billion by 2026.

Impact on Management::
Approximately two-thirds of the eliminated positions are managerial roles, reflecting Anderson's focus on reducing bureaucracy and decision-making layers.

Industry Context::
Similar cost-cutting measures are being taken by other pharmaceutical companies, such as Bristol Myers Squibb, which announced plans to cut 2,200 employees.

Challenges::
Bayer faces significant challenges, including the patent expiration of its blockbuster drug Xarelto and legal issues related to Roundup and PCB chemicals.

Investor Reaction::
The restructuring efforts have garnered positive reactions from shareholders who are seeking a strategic transformation to enhance Bayer's competitiveness.