Bayer's pharmaceutical unit plans more managerial cuts in Europe, Asia

By Michael Erman

NEW YORK (Reuters) - A top Bayer pharmaceutical executive said on Wednesday his group will continue slashing managerial jobs this year, planning cuts in Germany, Japan, the United Kingdom, Belgium and the Netherlands as part of the company's internal reorganization.

The pharmaceutical unit has already cut around 40% of its managerial positions in the U.S. and has also implemented cuts in Canada, Mexico, Italy, Australia and the Nordic countries, Sebastian Guth, chief operating officer of Bayer Pharmaceuticals, said in an interview with Reuters.

Guth would not say exactly how many jobs the company has cut in those countries, but noted that "40% is sort of the range that we tend to see - some are a little lower and some are a little higher."

"We're not shooting for a specific number," Guth said. "For an organization of our size, there's just a lot of work that is being done that ultimately doesn't add value to customers and products."

According to Guth, the reorganization is already paying dividends. For example, the company was able to shave off around a year from its timeline for filing for regulatory approval for its higher dose formulation of its macular degeneration treatment Eylea in Europe.

Regeneron, which sells Eylea in the U.S., received approval for a high-dose version of the drug last year.

Bill Anderson, who became Bayer's CEO in June 2023, announced cuts to management late last year. He has had a tumultuous start, with a continued wave of litigation about an alleged cancer-causing effect of weedkiller glyphosate and a major setback in drug development late last year.

Anderson said in March that he would suspend for up to three years any preparations to break apart the German maker of pharmaceuticals, crop protection products and consumer health remedies.

(Reporting by Michael Erman; Editing by Paul Simao)