Bayer Unveils New Operating Model
In its effort to make the company more agile and improve operational performance, The Bayer Group has announced its new “Dynamic Shared Ownership” operating model.
Bayer says this will do four things:
- reduce hierarchies
- eliminate bureaucracy
- streamline structures
- accelerate decision-making processes
"Bayer is currently in a difficult situation for various reasons. In order to make rapid, sustainable improvements to our operational performance and our room to maneuver, far-reaching measures are necessary. We want to get Bayer back on the road to success quickly," explains Heike Prinz, member of the board of management and labor director of Bayer AG."
The re-structuring of The Bayer Group will lead to “significant staff reductions” in Germany. The greatest reductions will be in in managerial and coordinator roles and are said to be announced in the coming months and by the end of 2025—at the latest. Bayer’s current employee count in Germany is over 22,000.
Via a joint declaration both the board of management of Bayer AG and the employee representatives on the supervisory board have agreed on the future steps being outlined.
"As an employee representative body, we are vigorously campaigning for the continued existence of the Group with all three divisions. We see the new operating model as a great opportunity to significantly improve our economic situation. However, in the company's strained economic situation, the programs and measures already underway are not sufficient, which is why, with a heavy heart, we have agreed to further cuts," says Heike Hausfeld, chairwoman of the central works council of Bayer AG.
The company outlines it is proceeding in line with German labor regulations and workforce placement and training protocols.
