Bayer to Cut 6,100 Jobs Worldwide as it Consolidates Schering
Drugmaker Bayer said Friday that it will cut 6,100 jobs, more than half of them in Europe, as it integrates Schering AG into its health care unit.
Bayer acquired Schering last year in a $22.35 billion deal and said it would have to cut thousands of jobs as the two companies merged their operations. However, it left the details open until Friday.
Bayer said the cuts would include 3,150 jobs in Europe, with 1,500 of those going in Germany.
Another 1,000 positions will be cut in the United States, along with 1,200 in Canada and Latin America. In Asia, 750 jobs will go.
Bayer said that 2,850 administrative jobs will go, while 1,400 research and development positions are to be cut along with 1,850 production jobs.
Leverkusen-based Bayer said that savings from the deal would total $925.75 million from 2009.
"We want to create an internationally successful pharmaceutical company with competitive cost structures," Bayer Chief Executive Werner Wenning said in a statement. "We said right from the start of the integration that job cuts would be necessary in order to achieve the synergy targets."
The merged company, called Bayer Schering Pharma and based in Berlin, has already begun talks with unions about the decision, but did not say if there would be buy-outs.
Bayer shares rose more than half a percent to $56.23 in Frankfurt trading.