“The job cuts are to be implemented swiftly over the coming months and completed by the end of 2025 at the latest,” the group said in a press release.

Bayer, the maker of Aspirin, employs around 22,000 in Germany and more than 100,000 worldwide.

The group’s companies in Germany will face “significant staff reductions”, the press statement added, without specifying the number of cuts, which come following an agreement between management and employee representatives.

The restructuring aims to “reduce hierarchies and complex structures within the company” and will “include employees with management or coordination tasks”, it said.

The cuts were announced in November after Bayer reported a massive loss of nearly €4.6 billion (US$4.9 billion) in the third quarter.

Bayer, which is embroiled in legal problems in the US over its glyphosate-based weedkiller Roundup, is also short of flagship products due to the gradual expiry of patents on several drugs.

It hired Bill Anderson in June as its CEO to help steer the company in a new direction.

“Bayer is currently in a difficult situation for a number of reasons”, said Heike Prinz, a member of the board of directors quoted in Wednesday’s press release.

The agreement reached with employee representatives guarantees the layoffs will not begin until the end of 2026, in order to give priority as far as possible to training and age-related measures.

“The fact that job security is only being extended by one year makes it clear that we are in an exceptionally serious situation,” said Heike Hausfeld, chair of the central works council representing the workforce.

Bayer’s management is facing demands from a number of investors to split the group, which currently consists of three divisions, and to spin off at least one branch to generate cash.