Bayer in structural reorganization. Jobs to remain stable

Dr. Marijn Dekkers, chairman of Bayer AG’s Group Board of Management

The Supervisory Board of Bayer has approved the reorganization proposed by the Board of Management, so that from January 1, 2016, the company’s business will be managed by three divisions: Pharmaceuticals, Consumer Health and Crop Science.

The Company says that the present structure of a strategic management holding company and operational subgroups will be replaced by an integrated organization under the umbrella of the strong Bayer brand.

“The aim of the new organization is to provide the best-possible support to Bayer’s strategy as a leading Life Science company and to put ourselves in an even stronger position vis-à-vis our competitors. We can achieve this by further improving our innovation strength, sharpening our customer focus and strengthening business process excellence,” said Dr. Marijn Dekkers, Chairman of the Board of Management of Bayer AG.

The Supervisory Board has appointed the heads of the divisions – Dieter Weinand (Pharmaceuticals), Erica Mann (Consumer Health) and Liam Condon (Crop Science) – to the Board of Management effective January 1, 2016. On the same date, Dr. Hartmut Klusik will also join the Board of Management of Bayer AG as the new Labor Director and Board member responsible for Human Resources, Technology and Sustainability. Bayer says he will succeed Michael König, who has requested that his contract not be extended.

“In recent years, Bayer has continued developing its portfolio with a significant focus on the Life Sciences. The company’s very strong position at this time enables it to concentrate exclusively on these businesses. The logical conclusion of this is greater integration of the organization,” said Werner Wenning, Chairman of the Supervisory Board of Bayer AG.

Concerning the changes on the Board of Management, Wenning added:

“We are convinced that the greater integration of strategic and operational roles will take Bayer forward and we have expanded the roles of the Board of Management members accordingly. We wish the Board of Management in its new constellation every success. It is with regret that we say farewell to Michael König. We would like to thank him most sincerely for his valuable contribution and wish him all the best for the future.”

HealthCare subgroup to be dissolved

Bayer says that, as part of the reorganization, its HealthCare subgroup will be dissolved. The Radiology business will be assigned to the Pharmaceuticals Division. Consumer Health will comprise the present Consumer Care Division. The Bayer CropScience subgroup will become the Crop Science Division. As a business unit, Animal Health will report directly to Liam Condon.

Furthermore, the divisions are to focus on core competencies close to their businesses – research and development, production, and sales & marketing. They will be supported by integrated functions such as Human Resources and Procurement, and by global services. Bayer adds that its existing Technology Services company will become the Engineering & Technology function. Bayer Business Services, the company in which information technology and business support services are bundled, will remain a separate legal entity that is to see further expansion.

This greater integration will also be reflected in Bayer’s brand architecture. In the future, the company will focus exclusively on the Bayer corporate brand and its product brands. The divisions will not have separate brand identities, the Company says.

Job numbers to remain stable in the years ahead

The Company says that despite the organizational changes, job numbers are expected to remain stable in the years ahead, both worldwide and in Germany. In a joint declaration issued by management and the employee representatives, key principles relating to the organizational changes have been defined.

“We expressly welcome the fact that the subgroups and Bayer Technology Services are being reintegrated under the roof of Bayer AG. Our joint declaration guarantees continued security, trust and motivation for the employees,” said Oliver Zühlke, Chairman of the Central Works Council of Bayer AG.

“We have also been able to bring about a return to the collective agreement of the German Mining, Chemical and Energy Industrial Union (IG BCE) for our colleagues at Bayer Business Services.”