Bayer to save 700M euros pa via job cuts

German drug major Bayer Healthcare, which recently completed the acquisition of Schering AG (Marketletters passim), says that integration of the latter will result in annual savings of 700.0 million euros ($921.9 million) from 2009 onwards.

As the firm previously announced, there will be a total reduction in the number of employees of 6,100, with 3,150 jobs going in Europe of which around 1,500 will be in Germany, but Berlin will remain the largest location and the headquarters of Bayer Schering Pharma AG. In addition, 1,000 jobs will go in the USA, 750 in the Asia Pacific and Japan region and 1,200 in Latin America and Canada. Within these overall reductions, some 1,400 posts will be shed in the global R&D function and 1,850 in production by 2009. Also, there will be a cut of about 2,850 in central administration and local and regional structures, the company said.