The Bayer Group is introducing a new operating model called “Dynamic Shared Ownership” (DSO) worldwide, in an effort to reduce hierarchies, eliminate bureaucracy, streamline structures and accelerate decision-making processes. The aim of the new operating model is to make the company much more agile and improve operational performance. This  includes significant staff reductions in the course of the restructuring at the Group companies in Germany.
 
“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,” said Heike Prinz, member of the Board of Management and Labor Director of Bayer AG.” Company management and employee representatives must pull together and agree on the steps expressed in the Joint Declaration to overcome this challenging situation and secure the future of the company. Only through decisive, collective action will we be able to remove all internal obstacles and put Bayer back on track for future profitable growth.”
 
“Our new operating model is designed to make Bayer faster and more innovative. However, its introduction will come at the expense of many managerial employees,” said Dr. Barbara Gansewendt, Chairwoman of the Bayer AG Group Executives’ Committee, which represents the interests of managerial employees. 
 
The job cuts will be implemented over the coming months and completed by the end of 2025 at the latest. According to the company, implementation will be largely decentralized and its scope cannot currently be quantified. The DSO intends to reduce hierarchies and complex structures within the company, and the job cuts will include employees with management or coordination tasks. Bayer currently employs around 22,200 people in Germany, of 101,369 gloablly.
 
The company is offering employees affected by the loss of their jobs more time and security for reorientation and qualification. Employment contracts of employees whose jobs have been lost and who have not left the company by the end of 2026 will be terminated as of December 31, 2026, for operational reasons if necessary. 
 
The joint declaration also contains a number of important commitments for the company’s location in Germany and its employees. For example, the parties reaffirm the Future Concept for Germany adopted in March 2022, which aims to strategically develop Bayer in Germany and align the business units there for the future. Bayer also intends to further develop the corporate headquarters in Germany in accordance with the DSO. The parties also agree to improve the company pension scheme at Bayer and to complete the already initiated repatriation of initial vocational training from external service providers to the company by the end of 2024 as planned.