The multinational biotechnology and seed the largest manufacturer in the world has announced it will eliminate about 2,600 jobs over the next two years, representing 12% of its workforce, to offset their losses from the decline in global prices commodity. Its benefits have fallen by 15.5% to 2,310 million.
Monsanto defined in a statement the changes as “global restructuring actions”, so it seems possible that the layoffs affect their subsidiaries outside the United States, although the company did not specify anything about it.
The restructuring aims to “enhance the competitiveness” of the company, with the “change of priorities in some commercial and research and development efforts, including the departure of business cane sugar,” according to the company statement.
“It is expected that the initial phase will lead to annual savings of 275 to 300 million dollars by the end of 2017, with a total cost of about 850 to 900 million dollars,” according to Monsanto.
“The plans also include an expected gap of about 2,600 employees in the next 18-24 months. The company is developing more plans to reduce its operating expenses by $ 100 million more, which would raise up to 400 million total savings Expected annual “he added.
Monsanto has a presence in Spain and several Latin American countries: Argentina, Brazil, Colombia, Chile, Ecuador, Guatemala, Mexico, Paraguay, Peru and Uruguay.
Prices of commodities such as corn, soybeans and wheat have three years in a row down, which has deteriorated finance companies like Monsanto and fertilizer producing companies or agricultural machinery, among others
Source: EFE
