Bayer Group Restructures

The Bayer Group is restructuring its core life science businesses through a series of portfolio, efficiency and structural measures that will result in the reduction of approximately 12,000 jobs worldwide by the end of 2021. Pharmaceuticals will account for approximately 900 jobs in R&D and 350 positions related to the factor VIII facility in Wuppertal; 1,100 jobs associated with the reorganization at Consumer Health; 4,100 positions at Crop Science as the result of integrating the acquired agriculture business; and a further 5,500 to 6,000 jobs in Corporate Functions.

Bayer intends to exit the Animal Health business and is assessing available options. Bayer intends to allocate the investment resources necessary to support Animal Health to Bayer’s core businesses of Pharmaceuticals, Consumer Health and Crop Science. 

For Consumer Health, measures include a planned exit from product categories that have more favorable development potential outside of Bayer. In addition to the recent divestment of prescription dermatology products, Bayer will review strategic options to exiting the sun care (Coppertone) and foot care (Dr. Scholl’s) product lines.

Bayer is also in discussions regarding the divestment of its 60% interest in German site services provider Currenta.

Bayer anticipates annual contributions of €2.6 billion from 2022 on as a result of its planned efficiency and structural measures. These measures will include a reduction of around 12,000 of 118,200 jobs worldwide, with the majority of them in Germany.

In the Pharmaceuticals Division measures include accelerated development of the innovation model and a restructuring of internal R&D activities. Resources freed up through the reduction of internal capacities will be directed toward strengthening investment in collaborative research models and external innovations. 

Within the hemophilia business, the introduction of a number of new products has led to a significant increase in competition. To remain competitive in this segment, Bayer has decided not to utilize the factor VIII facility it has built in Wuppertal, Germany, and to focus all recombinant factor VIII production in Berkeley, U.S.

"We have made very good progress with Bayer’s strategic development in recent years. As we now proceed with these measures, we are laying the foundation to sustainably enhance Bayer’s performance and profitability," said Werner Baumann, Chairman of the Board of Management of Bayer AG. "With these measures, we are positioning Bayer optimally for the future as a life science company."

"These changes are necessary and lay the foundation for Bayer to enhance its performance and agility. With these measures, we aim to take full advantage of the growth potential for our businesses," said Mr. Baumann. "We are aware of the gravity of these decisions for our employees. As in the past, we will implement the planned measures in a fair and responsible way."

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