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Bayer reports on staff cuts to "improve performance"

Company will adopt global operating model, the "Dynamic Shared Ownership"; it includes reducing hierarchies, eliminating bureaucracy and accelerating decision-making processes

17.01.2024 | 17:49 (UTC -3)

Schubert Peter, Revista Cultivar, with information from Markus Siebenmorgen

Bayer announced the adoption of a new global operating model, "Dynamic Shared Ownership" (DSO). The objective is to make the company more agile and improve operational performance. This includes reducing hierarchies, eliminating bureaucracy and speeding up decision-making processes. Bayer management and employee representatives agreed on principles for the company's future. This includes significant staff cuts at the group's companies in Germany.

These cuts will be implemented in the coming months, according to information provided by the company. Completion is expected by the end of 2025. DSO implementation will be decentralized. It will affect employees with management or coordination tasks. Bayer employs around 22,2 in Germany.

Bayer said it will offer agreements for the termination of employment contracts. They are scaled according to age. Affected employees will have up to six months to reorient. The company will offer support in finding new jobs outside the group. Individual training measures will also be available.

Heike Prinz, member of the management at Bayer, highlights the need for comprehensive measures. The company's economic situation requires decisive action, he explained. Heike Hausfeld, president of Bayer's central works council, sees opportunities in the new model. She mentions the company's difficult economic situation. Additional cuts may be necessary.

Barbara Gansewendt, chair of the Bayer Group executive committee, talks about the impact on managerial employees. The new operating model will result in the elimination of many of these positions. The company will offer support and time for personal reorientation. Francesco Grioli, member of Bayer's supervisory board, emphasizes the priority of employee safety. Significant changes are expected for employees.

In the material distributed, there is mention of commitments for the company's location in Germany. The "Future Concept for Germany", adopted in March 2022, will be reaffirmed. He aims to strategically develop Bayer in Germany.