Bayer, the chemical and pharmaceutical giant, is advancing its restructuring program and has for the first time disclosed savings figures. This will be crucial for Bayer as the company experienced an operational setback in the first quarter.
CEO Bill Anderson is serious about the rapid pace of the corporate overhaul he promised. In the first quarter alone, 1,500 positions were cut company-wide, with two-thirds of these cuts affecting management levels, Anderson reported on Tuesday during the presentation of the quarterly results.
The actual number of eliminated positions is likely even higher, as Bayer had already reduced entire hierarchy and management levels, particularly in its U.S. operations, during the second half of 2023.
Sources within the company suggest that one-third of Bayer’s approximately 17,000 global leadership positions are at risk. In Bayer’s U.S. pharmaceutical division, around 40 percent of management positions are expected to be eliminated.
Bayer has yet to provide a specific total number for the planned job cuts. However, Anderson has specified the projected savings. This year, Bayer aims to reduce costs by at least 500 million euros. By 2026, the company targets a total savings of two billion euros.
Since taking over in the summer of 2023, Anderson has implemented a radical restructuring program at Bayer. The American CEO believes that rigid structures, excessive bureaucracy, and slow decision-making processes have hampered the Leverkusen-based company. Anderson is dissolving entire departments and removing layers of hierarchy. These are being replaced by dynamically assembled teams that are empowered to make decisions and take actions independently. Anderson refers to this approach as “Dynamic Shared Ownership.”
