Bayer considers job cuts to shore up finances

To find financial wiggle room to compete with larger rivals, Bayer is considering job cuts and outsourcing, a person familiar with the discussion told Reuters.

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The drugmaker is facing pressure from investors to make purchases and licensing deals to ensure the long-term sustainability of its pharmaceutical division. This means having enough cash to buy new promising treatments from biotech firms to remain competitive.

Bayer is conducting a comprehensive review of its drug pipeline and is mulling tangible changes to cut expenses and simultaneously raise more cash to buy new therapies.

Bayer’s review will look at whether drug-testing services should be outsourced to cheaper entities. Labor representatives also are involved in the talks, according to the source familiar with the review.  

Bayer has remained silent about potential cuts or outsourcing, declining Reuters‘ request for comments.

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