Rumours regarding 1,000 jobs to be cut at Bayer Schering Pharma's Berlin plant were flying around less than two weeks ago, though representatives from the company were unable to comment on the validity of the story at the time.
The company has now formally detailed its workforce reduction plans, with over 3,000 jobs to go in Europe, 1,000 in the US, 750 in the Asia, Pacific and Japan regions and a further 1,200 in Latin America and Canada.
1,850 jobs are to be lost in production, though representatives from the company were unable to give further details as to which sites were to be streamlined. Two sites that were mentioned as having a "long tradition in the company" were the former Schering site in Bergkamen, and Bayer's Wuppertal site, both in Germany, though it could not be confirmed whether this heritage would ensure their immunity from the personnel cuts.
According to a company spokesperson, production restructuring programmes were already in progress in both firms before the announced integration of the pharma division of Bayer with Schering last year, with the earlier restructuring plans still ongoing.
The job cuts come as part of restructuring to iron out double-functions and overlaps between Schering and Bayer, and the company warned of the potential 6,000 job losses at the time of the takeover. Research and development will also be hit, losing 1,400 positions, with the remaining 2,850 jobs being lost in central administration and local and regional structure reduction.
The restructuring and integration plans are set to save the company €700m from 2009, when the job cuts and realignment are set to be complete.
The Berlin headquarters of Bayer Schering Pharma will remain the largest global location of the company, despite 1,500 jobs also being shed at the site.
"These essential streamlining measures are to fairly implemented in a socially acceptable process - balanced across the globe," said Werner Wenning, chairman of the Bayer Group management board and the supervisory board of Bayer Schering Pharma.
"This includes the reduction of the number of locations, cutting down on structural and personnel overcapacity, the concentration of research and development activities as well as the harmonisation of structures and processes in marketing and administration."
The company has been in discussions with works councils and employee representatives, and is now in talks with particular units regarding further detailed plans for the affected divisions.
