Bayer’s Pharma Division Grows as Restructuring Drives Major Changes

Bayer's restructuring since July 2023 has led to approximately 12,000 job cuts with a strong focus on reducing management layers and streamlining operations1 3 4 5.

A new operating model called Dynamic Shared Ownership (DSO) was implemented in January 2024, aiming to make Bayer more agile by thinning management and empowering product teams1 2 6.

The restructuring primarily affected managerial roles across all divisions, including Pharmaceuticals, and resulted in executive roster reduction from 14 to 81 2.

Despite overall flat sales in Q1 2025, Bayer's pharma division grew 4.1% year-on-year, reaching €4.548 billion ($5 billion), led by strong products like Kerendia (up 87%) and Nubeqa (up 78%), while Xarelto sales fell due to generic competition1 3 7.

The pharma division has unified its commercialization approach, moving away from isolated product teams to a global capabilities group that supports product goals directly2.

Bayer set a target to reach $10 billion in cancer drug revenues by 2030 and has ongoing initiatives and candidate drugs in oncology, including those with recent FDA “Breakthrough Therapy” designation2.

The company has warned of higher earnings impact in 2025 due to both litigation and restructuring costs9.

Leadership has emphasized continued investment in R&D and external acquisitions to accelerate future growth, especially in oncology2.

Bayer is actively managing litigation risks and pursuing settlements and appeals to contain financial impacts by 20263.