Bayer to cut 1,500 jobs

Despite a strong third quarter, Germany-based chemical company Bayer has announced job cuts in a bid to revamp the company’s plastics division.

The chemicals company reported Q3 earnings of EUR 953 million, or approximately C$1.34 billion. However, the company noted that it would try to save approximately EUR 300 million (more than C$420 million) per year by the end of 2009 in its MaterialScience business. According to the company, the cost saving measures would help the unit remain profitable in an increasingly competitive market.

As part of its cost cutting measures, the company plans to cut approximately 10 per cent — or about 1,500 — of the jobs in the unit worldwide.

“Bayer MaterialScience also intends to significantly lower administration, marketing and distribution costs,” said Werner Wenning, Bayer AG’s management board chairman. “The company expects that total special charges of EUR 150 million to EUR 200 million through 2009 will be necessary to achieve these savings.”