Bayer has executed a job reduction of 12,000 positions.
Bayer, the multinational pharmaceutical and life sciences company, has been undergoing a significant corporate restructuring since mid-2023. This restructuring has resulted in the elimination of approximately 12,000 jobs, primarily targeting managerial and administrative positions.
The workforce has decreased from around 96,567 employees at the end of Q2 2024 to about 89,556 by Q2 2025, reflecting a 7.3% decline. Further layoffs are anticipated over the next 18 months.
The restructuring plan aims to achieve about $2.3 billion (€2 billion) in annual cost savings by 2026. This is being achieved through optimising the organisational structure using a division-specific operating model (DSO).
The changes have had varying impacts on different divisions. The Crop Science division's EBITDA has improved by 32.3%, but the Pharmaceuticals' EBITDA has reduced by 17.2% due to portfolio adjustments.
The strategic goals of this restructuring include mitigating litigation risks, particularly those related to glyphosate, and investing in innovation around key pharmaceutical products such as Nubeqa and Kerendia.
Despite these efforts, Bayer's financial performance in 2025 Q2 has been mixed. While sales have increased slightly, net income has been negative due to restructuring and litigation costs. However, Bayer has raised its 2025 sales guidance and 2026 EBITDA targets, indicating expectations for improvement if the restructuring and innovation goals are realised.
The restructuring has also seen a reduction in the number of management levels within Bayer by half, aiming to reduce bureaucracy and speed up decision-making processes.
CEO Bill Anderson of Bayer has introduced a new organisational model to facilitate these changes. Some investors have called for a split of Bayer, but the company has so far resisted these demands.
As of the end of June, Bayer had just under 90,000 full-time employees worldwide. The company is under pressure due to the US lawsuit wave related to alleged cancer risks from the glyphosate-containing herbicide Roundup.
The data in this report is from the period covering the entire year of 2021.
The Commission has not yet adopted a decision regarding Bayer's corporate restructuring, which includes reducing costs in the finance, industry, and business sectors. Despite the mixed financial performance in 2025 Q2, Bayer anticipates improvement as they continue restructuring and focus on innovation, such as Nubeqa and Kerendia, aiming to reach their 2025 sales and 2026 EBITDA targets.
