More Bad News (This Time From Bayer): 6100 Jobs to be Lost

Below, the report from Reuters today.... Bayer detailed its plan to cut 6,100 jobs worldwide as part of an aim to save around ‚¬700 million ($925 million) a year from 2009 following last year's acquisition of rival Schering. The German drugs and chemicals group said in a statement on Friday 3,150 jobs would be cut in Europe, 1,000 in the United States and 750 in the Asia, Pacific and Japan region as well as 1,200 jobs in Latin America and Canada. Bayer said 1,500 of the planned cuts would be in Germany. It declined to give a detailed breakdown of job cuts in other countries affected. "Adjustments to personnel requirements and the consolidation of processes and systems will each contribute about half to the targeted global synergy effects," the company said. Bayer aims to create a healthcare business with sales of around ‚¬15 billion after its 17-billion-euro acquisition of Schering last year, enabling the merged group to compete better with global drug makers. Shares in Bayer were up 0.4 percent at ‚¬42.39 at 1055 GMT, in line with the pan-European DJ chemicals index. As part of its integration plan, Bayer said it would reduce 1,400 jobs in global research and development functions and 1,850 in production by 2009. It said about 2,850 positions from central administration as well as local and regional structures would be affected. "The integration process at Bayer Schering Pharma is well on track," said Arthur Higgins, head of Bayer Healthcare unit. Higgins, who is also head of the new unit, told reporters in Berlin the outlook for 2007 was "very positive," adding that the integration of Schering had not affected business. Bayer, the inventor of Aspirin, said Berlin would remain the largest location and the headquarters of Bayer Schering Pharma AG, as Schering AG was renamed.