Bill Anderson, the Chief Executive of Bayer, has announced plans to revamp the company’s structure and streamline management. These changes will result in significant job cuts but will not involve splitting the group into three separate businesses.
Since taking over the helm of the German pharmaceutical and agricultural conglomerate in June, Anderson has enlisted the help of a team of advisors to explore different structural options. One possibility being considered is the separation of either the crop science or consumer health divisions.
Unlike many other companies, Bayer currently houses pharmaceutical and consumer health assets under one roof. However, this trend is changing, with companies like Sanofi, Johnson & Johnson, Pfizer, and GSK spinning off their consumer-health divisions to focus on more profitable prescription drugs.
Anderson stated, “We are redesigning Bayer to focus only on what’s essential for our mission–and getting rid of everything else.” He also ruled out the option of a three-way split, explaining that it would require a complex two-step process.
Some shareholders, including Bluebell Capital Partners, have called for Bayer to split into three businesses: crop science, consumer health, and pharmaceuticals. However, Anderson believes that these divisions are interconnected and should remain within the same company.
In conclusion, Bayer is undergoing a restructuring process that will simplify its management structure and streamline operations. While significant job cuts are expected, the company will not be splitting into separate entities.