Bayer announces 12,000 job cuts to strengthen its core business

Bayer announced plans to exit its animal health business and sell some consumer health brands and product lines, cutting a total of 12,000 jobs. ▍ to cut 12,000 jobs and strengthen bay's core business, Bayer's Greater China website recently announced that Bayer intends to strengthen its core life sciences business while aggressively increasing productivity and profitability. Among them, Bayer said the group plans to exit its animal health business, consumer health brands ™ and Dr. After Scholl's ™ and sells a 60% interest in Currenta, a service provider at its German production site, Bayer allocates the investment resources needed to support animal health to Bayer's strategic core business of prescription drugs, consumer health and crop science. It is reported that its animal health division may be worth up to 7 billion euros (a total of 55.3 billion yuan). In the Consumer Health Business, Bayer has taken steps to enable the Division to keep up with market growth and increase profitability in the coming years. Bayer said in a statement that it was considering whether to sell more assets, including sunscreen business Coppertone and footwear brand Dr. Scholl's。 Through these changes, the company intends to focus on driving profitable growth in its core category of healthy consumer goods. In the prescription drug division, with the successful development of research and development pipelines, it is an important step to pay more attention to external innovation. These include accelerating the development of innovative models and restructuring in-house research and development activities. Resources released by reducing internal capacity can be used directly to increase investment in cooperative research and development models and external innovations. In the haemophilia business, the introduction of a large number of new products has greatly improved competitiveness. In order to ensure competitiveness in this area, Bayer has decided not to open the VIII Factor plant, which has been built in Wuppertal, Germany, and is focusing on restructuring the PRODUCTION of factor VIII in Berkeley, USA. "Through these measures, we will best position Bayer's future as a life sciences company," Werner Bowman, chairman of Bayer AG's management board, said at Thursday's meeting. "It is important to note that Bayer will pursue greater efficiency in its support functions and service sectors in order to increase innovation and productivity. The measures include cutting 12,000 jobs out of a global workforce of 118,000, most of them in Germany, with details to be finalised in the coming months. According to Bayer's statement, the job cuts were mainly made in the prescription drug division, which shed about 900 jobs in research and development, 350 jobs related to the Ubertal FACTOR VIII plant, about 1,100 jobs related to the restructuring of health consumer goods, about 4,100 crop science jobs were cut as a result of the consolidation of the agricultural business acquired, and 5,500 to 6,000 corporate functions, support functions, Jobs in the business services sector and national platforms. In fact, as can be seen from the above statement, the changes in Bayer's departments are in fact streamlining the product portfolio, cutting costs, investing resources in core sectors such as pharmaceuticals, strengthening core life sciences businesses, and significantly enhancing competitiveness by exiting peripheral businesses such as animal health. ▍ Animal Health's sales decline and sale is indeed due to the fact that, according to Bayer's third-quarter results released on November 14, 2018, sales and earnings in the prescription drug division, the consumer health division and the crop science division are all growing, while the animal health division's sales and earnings are declining and are increasingly marginalized. Bayer's prescription drug business reported sales of 4.8 percent to 4,163 million euros. In its 2017 Q3 results, Bayer reported a 2.3 per cent rise in sales of prescription drugs to 4,065 million euros - a steady rise from a year earlier. Mr Bowman said Sales of Bayer's key growth products amounted to EUR 1.73 billion, thanks to a total growth rate of 15.7 per cent for the oral anticoagulant Berito, the eye drug Arya, the cancer drug Xofigo and Bayvango, and the pulmonary arterial high pressure drug Adempas. Sales of consumer health products rose 3 per cent to 1,297 million euros. "All regions contributed to this growth, but sales growth was strongest in the Asia Pacific region, growing by more than 9 per cent," Mr. Bowman said. The figures for 2018 for healthy consumer goods, if not more visible, were less positive than the 2.9 per cent drop in the same period last year to 1.32 billion euros in earnings figures. The 2018 results showed a sharp rise in revenues in the CropScience division, with sales of 3,733 million euros. About 2.2 billion euros of that sales were related to the acquisition. With related sales and earnings rising in other divisions, Bayer's animal health business fell as expected, with sales down 13.5 per cent to 304 million euros, compared with a 1.4 per cent rise in sales to 359 million euros a year earlier. As a result, Bayer's animal health business, which accounts for a smaller share of the overall volume and has been in a downward trend this year, has been gradually marginalized in the Group's business and eventually sold in Bayer's slimming strategy. Bayer's share price has fallen by more than a third so far, according to CNN, the BBC and Fortune, in part because of a lawsuit by the company involving Theroundup, a herbicide made by Monsanto that it says could cause cancer in school grounds administrators, and at least 9,000 lawsuits are pending. To that end, Mr. Bowman clarified to Fortune that the restructuring had nothing to do with litigation affliged by the acquisition.