Bayer Continues Workforce Reduction as Part of New Operating Model

Bayer AG, the German multinational pharmaceutical and life sciences company, has continued its significant workforce reduction in the third quarter of 2025, albeit at a slightly slower pace. This ongoing restructuring is part of the company's implementation of a new operating model initiated in early 2024.

Layoff Numbers and Future Projections

According to Bayer's latest earnings presentation, the company has reduced its workforce by approximately 13,500 employees since January 2024. This includes a substantial cut of around 5,000 managers, dramatically reducing the number of managerial positions from about 15,000 to roughly 5,000.

In the third quarter of 2025 alone, Bayer's employee count decreased by 1,054, representing a 1% quarter-over-quarter reduction. This marks a slight deceleration compared to the 1.4% decrease observed in the second quarter.

CEO Bill Anderson, during a recent earnings call, indicated that while further reductions are expected, they should occur at a more gradual rate. "I think you should expect to see [headcount is] going to continue to go down, but it's not going to go down at the same rate that it has for the last 18 months," Anderson stated.

Dynamic Shared Ownership Model

The workforce reduction is a key component of Bayer's new Dynamic Shared Ownership (DSO) model, introduced in January 2024. This restructuring came in response to Anderson's expressed disappointment in the company's performance.

The DSO model aims to streamline the organization by reducing layers of management. Anderson emphasized the rationale behind this approach: "We kept the great majority of the talent that we need to drive our progress, but we took out the gatekeepers that, frankly, in all large multinationals, they just slow everything down and prevent us from being immediately responsive to customer needs or driving forward with innovations."

Impact on Operations and Future Outlook

Despite the extensive layoffs, Bayer reports positive outcomes from its restructuring efforts. Anderson highlighted that the company is now seeing "weekly examples that are coming through of products that are launching in record time," attributing this improved efficiency to the streamlined organizational structure.

Looking ahead, Anderson anticipates that future headcount reductions will primarily occur through "incremental attrition." He also noted that the company's crop science division may see further employment decreases as Bayer seeks to enhance profitability in that area.

Bayer's workforce reduction places it among six major pharmaceutical companies whose recent and planned layoffs could collectively result in over 39,000 job losses across the industry, according to tallies by BioSpace.