Monsanto adds 1000 to job cut tally

US agricultural biotechnology giant Monsanto has added 1000 to the number of staff it intends to lay off by the end of fiscal year 2018. The company had already revealed plans to cut 2,600 jobs over the next two years, and the new plan brings the total up to 16% of the company’s global workforce.

The move is part of an effort to reduce annual costs by $500 million amid declining biotech seed and herbicide sales. Brett Wong, an agricultural sector analyst for Piper Jaffray in Boston, US, suggests that more layoffs can be expected. ‘Unfortunately, this probably isn’t the end – labour is the easiest thing to cut,’ he tells Chemistry World.

Wong says a major problem is the low grain prices currently challenging farms’ profitability. ‘Farmers are looking to be as cost-conscious as they can. That entails cutting discretionary items, or cutting back on things that they normally wouldn’t,’ he explains.

It is not just Monsanto that is feeling the squeeze. Other sectors that are under pressure because of low commodity prices – like mining, materials and energy – are also facing similar challenges and looking to tighten their belts, Wong states.

Related Content

Monsanto plans 2600 layoffs

12 October 2015 Business

news image

Sales losses prompt agrochemical giant to slash workforce by 12% over the next two years

BP to cut 7000 jobs

4 February 2016 Business

news image

UK oil company reduces its workforce to cut costs in response to low oil price and charges from Deepwater Horizon incident

Most Commented

Electric choc treatment promises lower fat chocolate

22 June 2016 Research

news image

Problem of reduced fat chocolate gumming up factories’ pipelines overcome

UK plans stricter controls on poisons and explosives

7 August 2014 News and Analysis

news image

The government will use licenses to track the sale of hazardous substances