Bayer plans over 1.5 billion euros of cost cuts as of 2024
Berlin: German drugs company Bayer AG announced plans on Wednesday for more than 1.5 billion euros ($1.76 billion)of cost cuts as of 2024 and said it would take impairment charges on its agricultural business as it battles with low commodity prices.
Bayer said that the impact of the coronavirus on the crop science business will be deeper than originally expected due to low commodity prices, intense competition in soy, and reduced biofuel consumption, compounded by negative currency effects.
As a result, Bayer expects to take non-cash impairment charges in the mid- to high-single-digit billion-euros range on assets in the agricultural business.
Bayer's share price has been pummelled by a deal it made in June to pay around $11 billion to settle U.S. lawsuits over its Roundup weedkiller. Bayer acquired Roundup with its purchase of Monsanto for $63 billion in 2018.
Bayer said the new cuts come on top of annual savings of 2.6 billion euros as of 2022, which were announced in November 2018, adding that the company was also considering exiting non-strategic businesses or brands below the divisional level.
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