Post by JustJohn or JJ on Dec 4, 2018 8:10:57 GMT -7
Bayer Slashes 12,000 Jobs as Monsanto Takeover Turns Sour
Date: Tuesday, 4-Dec-2018 05:58:57
Bayer, the German drugmaker that bought U.S. seed company Monsanto earlier this year, announced on Thursday the sale of a number of businesses, around 12,000 job cuts and 3.3 billion euros ($3.8 billion) in impairments, Reuters reported.
Chief Executive Werner Baumann is under pressure to boost Bayer’s share price after a drop of more than 35 percent so far this year, dragged down by concern over more than 9,000 lawsuits it faces over the cancer-causing effect of Monsanto’s Roundup weed killer.
Sustainable Pulse Director, Henry Rowlands, commented on the shocking news on Thursday; “This just shows what happens when a company doesn’t do its homework before making a huge investment. Bayer will struggle to recover from the Monsanto fiasco and investors in the company are obviously now very concerned. The only way out of this mess for Bayer is to stop selling glyphosate-based herbicides.”
The group said it was looking at options – that could include a sale – for the Coppertone sunscreen and Dr. Scholl’s foot care products from the consumer healthcare division it bought from Merck & Co in 2014 for $14 billion.
It will also divest its animal health division, the number five player in the industry, which analysts have said could fetch 6-7 billion euros ($7.9 billion).
An unfortunate situation that is all too common when a Corporation that is failing to be purchased by another. Then comes the thinning out what is profitable and that what is not returning favourable profit. It is not kind, but then not to say not in reality.
Monsanto has a bad press in the US for a long time and i thought it has even worse press in Europe due to its environmental impact. I am surprised that Bayer bought it. Since Bayer has such a good reputation, maybe Monsanto would survive after some of the headache.