As part of an effort to streamline its management structure, Bayer is eliminating 90 positions at its U.S. headquarters in Whippany.

The life sciences company reported the layoffs will take effect June 19, according to a filing with the state Department of Labor & Workforce Development.

In January, Bayer revealed a new operating model. The plan aims to cut back on bureaucracy and hierarchies as well as streamline company structures.

Designed to boost operational efficiency and “make the company much more agile,” the restructuring initiative includes job cuts over the next several months. Bayer said it expects to complete the effort by the end of 2025.

Bayer had a global headcount of more than 101,000 as of the end of 2023.

While Bayer has not specified how many will be impacted, the company said it will remove “several layers” of management.

Disappointing results

During Bayer’s third-quarter earnings report in November 2023, CEO Bill Anderson expressed disappointment with the company’s performance. 

At that time, Bayer said revenue across its three segments (pharmaceuticals, consumer health, crop science) totaled $38.7 billion during the nine months ending Sept. 30, 2023. That marked a 7.7% drop compared to the same period the prior year. The company also reported a $4.5 billion loss, versus a $3.5 billion profit for Q3 2022.

Anderson has been at the helm of the company since June 2023.

“Our mission of ‘Health for all, hunger for none’ hasn’t always been front and center in our operations,” he said. “That will change. We are redesigning Bayer to focus only on what’s essential for our mission – and getting rid of everything else.”

“This step will unleash our teams with the mission-focus necessary to turn things around. Ninety-five percent of the decision-making in the organization will shift from managers to the people doing the work,” said Anderson, who noted that while it will include “a significant reduction in workforce” it is “not a traditional cost-cutting program.”

He also said Bayer is “looking closely at our structural options,” including a separation of either consumer health or crop division divisions.

“We have an expert team – including external financial advisors – evaluating them. They’re reviewing market conditions, what structural changes would mean for our value creation, one-time costs and dis-synergies, cash flows and leverage ratios, tax leakage, and other criteria,” Anderson said.

The planned New Jersey reductions come about a week after the German multinational made sweeping changes to its leadership structure. Bayer trimmed its executive roster from 14 members to eight. The revamp also saw three executives let go and three others demoted.

NJ elevation

However, Bayer recently promoted New Jersey-based Sebastian Guth to chief operating officer, effective April 1. He is assigned with responsibility for commercial operations across all the company’s active markets.

In the new role, Guth will work with teams across countries and regions to drive commercial strategy to enhance customer value, maximize market opportunities, and generate revenue growth and profitability for Bayer pharmaceuticals worldwide, the company said.

Previously, Guth was appointed president and senior representative of Bayer’s U.S. operations in June 2023. He will continue to reside locally, according to the company.

In a statement to NJBIZ, a Bayer U.S. spokesperson said, “As Bayer U.S. focuses on what matters most – delivering our mission of ‘Health for all, Hunger for none’ and delivering value for our customers, patients, farmers, our shareholders, and all other important stakeholders – we are adopting a new operating model and with it, a new organizational structure. Our new way of working will enable more agility, empower employees to innovate and act, and deepen the focus on our mission.”

The spokesperson continued, “Aligned with this shift, we are adjusting our U.S. structure resulting in some positions being eliminated or redesigned, and a few new roles being created. We want to express our appreciation for our employees and the important role they have played in our organization. Ultimately, our new operating model will accelerate our growth and position us for long-term success.”