In a move to restructure and cut costs in the face of declining corn seed sales and lower than expected earnings, Monsanto has announced it is cutting 2,600 jobs over the next 18 to 24 months.
In the fourth quarter of fiscal year 2015, Monsanto reported that its corn seed sales, which are the core to its business, fell by 5.1% to $598 million, contributing to an overall loss for the company of $495 million for the quarter.
The measures to restructure were announced in the fiscal year 2015 report, which stated that the first phase of cuts is expected to generate between $275 and $300 million in annual savings by the end of fiscal year 2017, and that the company is currently developing a strategy to cut operating costs by an additional $100 million, bringing total expected savings per year to $400 million.
“We will continue to focus on executing on key milestones within our core seeds and traits business, and we plan to remain disciplined in our agricultural productivity strategy, drive further optimization in spend through strategic restructuring actions and accelerate our progress toward our targeted capital structure,” said Monsanto CEO, Hugh Grant.
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