Corteva to Exit Some Markets, Cut Jobs in Cost-Saving Push
Corteva Layoffs 091522
Seeds and pesticides company Corteva Inc announced on Tuesday plans to exit about 35 countries and lay off roughly 5% of its global workforce as part of the company's cost-cutting plans. A surge in inflation this year to four-decade highs has forced corporate America to slash planned spending and roll out measures to shield their margins from rising raw material costs.
"We don't think that (inflation) is abating," said Chief Financial Officer Dave Anderson at Corteva's annual investor meeting.
Cost pressure will ease in 2023 from levels seen this year, but it will still be significant, he added.
Corteva plans to reduce focus to about 110 markets, honing in on 20 core countries, including the United States, Canada, Brazil, India and Western Europe. The non-core regions make up less than 5% of the company's annual revenue, Anderson said.
Last month, it forecast run-rate savings of more than $200 million by 2025 from its strategic plans, and charges of about $400 million through the second quarter of 2023.
Indianapolis-based Corteva expects net sales of $19.5 billion to $20.5 billion in 2025, it said on Tuesday, adding it plans to invest about 8% of that in research and development by then.
The agricultural commodities company forecast 2025 operating EPS between $3.7 and $4.35.
Its board also authorized a new $2 billion share buyback program, in addition to its ongoing $1.5 billion program announced in August last year.
Corteva's shares were up about 2% in midday trading.
(Reporting by Ruhi Soni and Ankit Kumar in Bengaluru; Editing by Anil D'Silva and Devika Syamnath)
