Bayer stock: Crash and no end in sight

Last Updated: 18. Januar 2024By

The Bayer stock is one of the biggest losers in recent years and could not convince in 2023 either. In the end, there was a loss of about 30 percent on the chart and over a five-year period, the Bayer stock is around 50 percent in the red.

And the bad news does not stop: In November, the DAX corporation had to cope with a severe setback in its previous pharmaceutical hope, and shortly before the end of the year, the Bayer subsidiary Monsanto was once again sued for damages.

Under the new CEO Bill Anderson, the company will undergo radical changes in the coming years: The administration will be streamlined and several positions will be eliminated by the end of 2025. However, a split of the company – contrary to some assumptions – is not likely to happen.

Bayer cuts many jobs The announcement did not come as a surprise to observers: Under its new CEO Bill Anderson, Bayer will take a different path and plans to cut jobs on a large scale. Currently, the DAX corporation has around 100,000 employees worldwide, including around 22,000 in Germany. Especially here, some employees are likely to lose their jobs at Bayer by the end of 2025.

Because Anderson wants to streamline the administration and eliminate some leadership levels. In the coming years, job cuts will primarily be driven by severance packages and other measures. Redundancies due to operational reasons are only conceivable from the beginning of 2027 due to the extended employment protection currently in place.

The cost and number of jobs to be cut at Bayer is not yet known. It is possible that at the capital markets day in early March, there will be concrete information on this and the future strategy.

Bayer stock continues to struggle Investors also hope for clarifying information on the topic of splitting up at the capital markets day. Recently, there have been reports that this will not be an issue for Bayer for the time being. The Bayer stock is not responding positively and loses almost 3 percent during the morning.

In general, things are not looking good for Bayer at the moment, and investors should be patient. The company could use a realignment. A turnaround is certainly possible in the future, but it is not in sight at the moment.

Bayer stock, 10 years – Source: