Bayer Layoffs: 1,500 jobs cut in major 2024 restructuring

What’s happening at Bayer?

During the first quarter of 2024, German pharmaceutical company Bayer eliminated 1,500 roles as part of a significant restructuring initiative previously announced by CEO Bill Anderson. Speaking on a first-quarter earnings call, Anderson revealed that about two-thirds of these roles were managerial positions. While the initial job cuts were substantial, the CEO did not specify the total number of positions that might be affected as the restructuring continues.

These changes are part of Bayer’s new operational model named “dynamic shared ownership,” aimed at decreasing hierarchy and bureaucracy across the conglomerate.

Overview of Bayer’s job cuts

• Extent of Job Cuts: Initially, more than 1,500 positions have been eliminated.
• Composition of Cuts: A significant portion of the cuts impacted managerial roles.
• CEO’s Vision: Anderson, who took over as CEO in June of the previous year, initiated these cuts as part of a promised major overhaul to combat sluggish performance and excessive bureaucracy within Bayer.
• Global Scale: The job cuts are part of a broader restructuring affecting Bayer’s operations worldwide.
• Timeline for Layoffs: The layoffs are expected to be completed by the end of 2025 in the U.S., with terminations in Germany extending until the end of 2026 due to stronger labor protections.
• Restructuring Costs: The financial impact of these changes includes 200 million euros spent in the first quarter, aiming for annual savings of 500 million euros by the end of 2024.
• Radical Realignment: The restructuring is also seen as a “radical realignment” of Bayer’s internal culture to streamline operations and reduce bureaucratic overhead.

Impact on Canadian staff

It remains unclear how many Canadian employees at Bayer have been let go.

According to the company’s LinkedIn page, it has more than 1,300 workers in the country.

Key quotes from CEO

• On the Purpose of the Restructuring: “We’ve said from the beginning, our focus really isn’t on a head count number. Our focus is really relentless on making sure that every job in the company is oriented around the mission.”
• On the Approach to Reducing Jobs: “That’s one of the reasons this is very different from a typical restructuring exercise, where the management decides what’s the number and then just sort of dispenses targets. We haven’t done that, and we’re not going to do that.”
• On the Impact of the New Model: “People are just amazed at how much more they can get done when they have the authority with their colleagues to make the decisions and move.”
• On Future Job Cuts: “Because of the cut-as-you-go approach, I expect that the number of job reductions could be lumpy in the future if the company decides to divest or shut down any large operations.”

Termination agreements for Bayer employees

Non-unionized employees at Bayer Canada are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

LEARN MORE
• Severance pay for pharmaceutical industry employees
• Rights to severance for provincially regulated employees
• Severance packages during mass layoffs

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.