Bayer reported a 16.5% decline in quarterly adjusted earnings, marking a significant challenge for CEO Bill Anderson in his second year. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the April-to-June period fell to €2.1 billion ($2.3 billion), impacted by weak demand stemming from lower grain prices and negative foreign exchange effects.
In response to these challenges, Anderson has initiated efforts to streamline decision-making and reduce corporate bureaucracy. The company has accelerated job cuts, reducing the equivalent of 3,200 full-time positions in the first half of the year, following a reduction of 1,500 jobs in the first quarter. These voluntary redundancies primarily affect management roles and align with Bayer’s goal of cutting €2 billion in annual costs by 2026.
Anderson emphasized that the job cuts are part of a broader strategy to empower product developers and sales teams by reducing hierarchical levels within the organization. He has not set specific targets for further staff reductions but indicated that the cuts would be significant.