Bayer 2024: Nearly 7,000 Layoffs, Total Revenue Reaches 46.6 Billion Euros
On March 5, Bayer released its financial report, which showed that in 2024, revenue was 46.606 billion euros (49.701 billion US dollars), a 2.2% decrease compared to the previous year, with core earnings per share dropping by 21% to 5.05 euros. Revenue from the China region was 3.6 billion euros, down 0.7% from 2023 (3.624 billion euros). Research and development investment totaled 6.209 billion euros, a 15.6% year-over-year increase.
In 2024, Bayer's pharmaceutical business generated 18.131 billion euros in revenue, a 0.3% increase from the previous year. Research and development expenditure for pharmaceuticals was 3.366 billion euros, up 1.2%. Notable growth was seen in Nubeqa (darolutamide) and Kerendia (finerenone), with total sales reaching 1.523 billion euros (up 75.3%) and 463 million euros (up 71.5%) respectively.
The oral anticoagulant Xarelto (rivaroxaban) remained Bayer's top-selling drug in 2024, with sales of 3.48 billion euros (about 27.1 billion RMB), but its sales declined sharply by 14.7% due to patent expiration.
The second-highest sales came from the ophthalmology drug Eylea (aflibercept), which achieved 3.306 billion euros in sales (about 25.75 billion RMB).
At the beginning of 2024, Bayer announced an organizational restructuring, introducing a new operating model globally to address issues such as reducing hierarchical levels, interdepartmental independence, and operational inefficiency. The financial report indicated that the company currently has 92,815 employees, a decrease of 6,908 from 2023.
In 2024, Bayer accelerated its efforts to streamline the organizational structure, with layoffs focusing on management. In the first quarter, 1,500 positions were cut, two-thirds of which were management roles, and the restructuring of the pharmaceutical commercialization team began. By the beginning of the fourth quarter, the pharmaceutical commercialization department's layoffs were mostly completed, reducing the global workforce to 98,189, a 3.5% decrease from the previous year. Layoffs in the U.S. department are expected to be completed by the end of 2025, and layoffs in Germany are expected to extend until the end of 2026, with the goal of saving 2 billion euros by 2026.
Bayer Group CEO Bill Anderson stated, "We have three core businesses, each with significant potential for long-term development. However, to seize future opportunities, we first need to navigate a challenging period, and there is still much work to be done. 2025 will be a 'critical turning point' for the company." He added that company performance is expected to improve starting in 2026. In addition to the four existing strategic focus areas, the company will treat the profitability of its crop science business as a fifth strategic focus and has developed a comprehensive five-year plan to enhance profitability. "You will see us go all out, focusing on taking the right actions, creating value for our customers, strengthening the foundation for the company, and securing a future for our shareholders."
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