Bayer announced Thursday that it will cut around 1250 jobs from its pharmaceutical division as part of a wider staff-reduction plan that will lead to the loss of about 12 000 positions globally by the end of 2021. The streamlining is part of an overhaul under which the company will exit the animal health business in order to focus on its core areas of pharmaceuticals, consumer health and crop science.

Chairman Werner Baumann said "these changes are necessary and lay the foundation for Bayer to enhance its performance and agility," adding "with these measures, we aim to take full advantage of the growth potential for our businesses." However, Baumann noted "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."

According to Bayer, approximately 900 jobs in R&D in the pharmaceuticals unit will be cut, while around 350 positions will be eliminated following a decision not to utilise a factor VIII facility it has built in Wuppertal, Germany. The company explained that within the haemophilia business, the launch of new drugs has led "to a significant increase in competition," and in order to remain competitive it will focus all recombinant factor VIII production in Berkeley, US.

Along with the cuts at the pharmaceuticals division, around 1100 jobs will be hit due to a reorganisation at consumer health, with another 4100 positions going at crop science as the result of integrating Monsanto. Bayer added that a further 5500 to 6000 jobs in the corporate functions, supporting functions, business services and country platforms will also be eliminated. The company indicated that "a significant" number of the cuts will affect staff in Germany.