Bayer Announces Further Layoffs Amid Ongoing Restructuring and Financial Challenges

Bayer AG, the German pharmaceutical and life sciences giant, has revealed plans for additional workforce reductions as part of its continuing restructuring efforts. The announcement comes on the heels of significant job cuts over the past two years and amid mixed financial results across the company's portfolio.

Continued Workforce Reductions

In a recent earnings call, Bayer CEO Bill Anderson disclosed that the company anticipates further layoffs in the coming 18 months. This revelation follows a substantial reduction in the company's global workforce, which has already seen more than 10,000 positions eliminated since July 2023 when Bayer initiated a comprehensive reorganization initiative.

The scale of the ongoing restructuring is evident in the company's latest employment figures. As of the end of the second quarter of 2025, Bayer reported a global workforce of 89,556 employees, marking a 7.3% decrease from the 96,567 employees recorded at the same point in the previous year.

Financial Performance and Market Outlook

Despite the extensive cost-cutting measures, Bayer's pharmaceutical division experienced a slight decline in sales, reporting €4.4 billion ($5.1 billion) for the most recent quarter, down from €4.6 billion ($5.3 billion) in the same period last year. However, the company maintains that these figures are "in line" with the prior year when adjusted for currency and portfolio effects.

In response to these results, Bayer has adjusted its sales guidance for the company as a whole, shifting from a range of -3 to +1% to a more optimistic -1 to +3%. The pharmaceutical division's outlook has been revised even more favorably, from -4 to -1% to 0 to +3%.

Looking ahead, Bayer projects an 8% expansion in its pharmaceuticals market for 2025, though it acknowledges that patent expirations and the entry of generic competitors are likely to temper some of this growth.

Legal Challenges and Financial Implications

While Bayer continues to streamline its operations, the company faces ongoing legal challenges that are impacting its financial performance. Notably, Bayer incurred €1.2 billion ($1.4 billion) in costs related to a lawsuit in Missouri concerning its glyphosate-based weed killer, which plaintiffs allege causes cancer. In May, a court upheld a $611 million judgment against the company in this case.

CEO Bill Anderson emphasized the company's commitment to addressing these legal issues, stating, "We affirm our objective to significantly contain the litigation risk by the end of 2026." This statement underscores the importance of resolving ongoing legal disputes to Bayer's future financial stability and growth prospects.