Bayer’s new CEO plans to slash management jobs as part of a major restructuring: Reuters

Bayer, Bill Anderson, layoffs, Strategies

Bill Anderson, Bayer’s relatively new CEO, is reportedly gearing up to make substantial changes within the pharmaceutical giant, starting with a restructuring of its management ranks. Anderson, who took the helm a few months ago, is keen on demonstrating his readiness to take swift action to investors, as per sources familiar with the matter cited by Reuters.

As a first step in his transformative agenda, Anderson is said to be planning job cuts within the company’s management. The initial plans for this restructuring are expected to be unveiled at an upcoming internal strategy meeting. When approached for comment, a Bayer spokesperson chose not to provide any details.

Notably, two of Reuters’ sources have identified Oliver Kohlahaas, Bayer’s head of strategy, as one of the individuals affected by this overhaul. Kohlahaas, who has been with Bayer since 2007 and assumed the role of head of strategy in 2018, recently announced his departure from the company in a LinkedIn post. In his post, he expressed gratitude to former CEO Werner Baumann and voiced confidence in Anderson’s leadership, stating that he believes Anderson will steer the company toward success.

Bill Anderson, a former Roche executive, was appointed as Bayer’s CEO earlier this year. His arrival immediately sparked discussions about whether Bayer should consider divesting its consumer health or crop science divisions. In a LinkedIn post upon his appointment, Anderson expressed his eagerness to unlock the full potential of the company. In the months leading up to his official start date in June, he emphasized his intention to engage in active listening and to maintain an open mind regarding potential options for Bayer’s future direction.

These proposed changes within Bayer come at a time when the company is grappling with declining sales and actively seeking avenues for growth. In the second quarter, Bayer reported a significant 14% drop in sales compared to the same period in the previous year. Sales in the crop science sector experienced a sharp decline of 24%, while pharmaceutical revenues also declined, albeit to a lesser extent at 5%.

Bayer had previously revised its 2023 revenue forecast downward by 2.5 billion euros (equivalent to $2.7 billion), and it now anticipates annual sales to fall within the range of 48.5 billion euros to 49.5 billion euros (approximately $53 billion to $54.1 billion). These challenges are likely propelling Anderson’s efforts to swiftly implement changes and steer the company towards a more prosperous future.

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