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The company is streamlining its global workforce as part of a multi-year cost-cutting strategy, while raising its 2025 outlook on the strength of key pharmaceutical products.
Image Credit: Adobe Stock Images/Ryzhkov
Bayer announced that it has laid off a total of 12,000 employees to date as part of a sweeping restructuring effort initiated by CEO Bill Anderson. The move is part of the company’s ongoing cost-cutting program aimed at achieving $2.3 billion in annual savings by 2026, with a focus on reducing managerial roles. The layoffs, which began in 2024, initially included a significant downsizing of its executive team, with global headcount reduced from around 100,000 to just under 90,000.
According to a FirstWord Pharma report, on a call with investors earlier this week, Anderson declined to specify how many more positions would be eliminated but confirmed that further reductions are expected in the coming months.1
"We're not projecting how many job losses there will be," explained Anderson, on a call with investors. “"But I would expect that there will be additional reductions in headcount number certainly over the coming 18 months or so."
Despite the continued layoffs, Bayer revealed modest growth in its 2025 Q2 earnings report, citing cautious optimism for the second half of the year. The company announced it was raising its full-year currency-adjusted sales and earnings guidance following a steady performance in its pharmaceutical division.
As per the report, Bayer posted Q2 sales of approximately $11.71 billion, up 0.9% on a currency- and portfolio-adjusted basis. However, net income declined to $220 million, largely due to nearly $1.89 billion in new litigation provisions—$1.31 billion related to glyphosate and $580 million for PCB-associated cases.
Pharmaceutical growth was primarily led by Nubeqa (darolutamide) and Kerendia (finerenone). Nubeqa, a prostate cancer treatment, saw sales rise 50.5% year-over-year to about $595 million. Kerendia, used for chronic kidney disease, posted a 67.1% increase, reaching approximately $200 million. Notably, Eylea recorded a 4.3% gain, helping offset the ongoing decline of Xarelto, which dropped 27.1% in sales due to patent expirations in key markets.
Despite a 90% decrease in free cash flow to $140 million, Bayer reduced net financial debt to $36.27 billion, down 2.9% since March and 9.5% year-over-year, aided by positive currency effects. The company stated it will continue to focus on operational improvements, cost containment, and strategic product launches—including the regulatory submission of potential blockbuster herbicide icafolin in the United States, Canada, Brazil, and the EU.2
Bayer also updated investors on its efforts to reduce litigation risk by 2026. The company is pursuing a multi-pronged strategy involving confidential settlements, appeals, and regulatory engagement. Financial provisions have been made, and additional legal strategies remain under review as Bayer looks to move beyond ongoing glyphosate and PCB-related cases. Despite prior speculation that the company might split amid the layoffs, Anderson said in March 2024 that such a move would be too complex due to existing litigation, debt, bureaucracy, and the company’s research pipeline.3,4
“We’re beginning an important second half of 2025, which will be marked by further progress on all strategic priorities, continued launches, and geopolitical and currency crosswinds to navigate,” said Anderson, in a press release. “Thanks to our year-to-date performance in Pharmaceuticals, we’re raising our 2025 currency-adjusted guidance for the Group on both sales and earnings.”
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