On January 17 local time, German pharmaceutical company Bayer announced the global launch of a new operating model aimed at reducing hierarchy, eliminating bureaucracy, simplifying structures, and accelerating decision-making processes. Relevant layoffs will be swiftly implemented over the next few months and completed no later than the end of 2025. According to the principles of the new operating model, implementation will largely be decentralized, meaning the scope of layoffs cannot yet be quantified. As the purpose of the new operating model is to reduce internal hierarchy and complex structures within the company, layoffs will include employees responsible for management or coordination roles. It is reported that Bayer currently has approximately 22,200 employees in Germany.
Bayer AG Management Board Member and Labor Director Heike Prinz stated that Bayer is currently in a difficult situation for various reasons. To rapidly and sustainably improve the company's operational performance, it is necessary to implement far-reaching measures. Barbara Gansewendt, Chair of Bayer AG's Executive Committee, noted that the introduction of the new operating model will come at the expense of many managers, but there is no viable alternative given the current circumstances. The company ensures that under the new system, laid-off employees will be provided with attractive severance packages and the necessary support to help them find new jobs as soon as possible.