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Bayer to cut 6,100 jobs worldwide

The drugmaker Bayer AG said Friday that it will cut 6,100 jobs, or 5.5 percent of its work force, as it integrates Schering AG into its health care unit. More than half of the cuts will be in Europe, but about 1,000 positions will be eliminated in the United States.
/ Source: The Associated Press

The drugmaker Bayer AG said Friday that it will cut 6,100 jobs, or 5.5 percent of its work force, as it integrates Schering AG into its health care unit. More than half of the cuts will be in Europe, but about 1,000 positions will be eliminated in the United States.

Bayer acquired Schering last year in a $22.4 billion deal and said it would have to cut thousands of jobs as the two companies combined operations. However, it left the details open until Friday.

Bayer employed about 100,200 people as of the end of 2006.

Bayer said the cuts would include 3,150 jobs in Europe, with 1,500 of those going in Germany. In addition to the U.S. cuts, another 1,200 jobs will be cut in Canada and Latin America and 750 in Asia.

Bayer said that 2,850 administrative jobs will go, while 1,400 research and development positions are to be cut along with 1,850 production jobs.

Leverkusen-based Bayer said that savings from the deal would total $925.75 million from 2009.

"We want to create an internationally successful pharmaceutical company with competitive cost structures," Bayer Chief Executive Werner Wenning said in a statement. "We said right from the start of the integration that job cuts would be necessary in order to achieve the synergy targets."

The health care unit, called Bayer Schering Pharma AG and based in Berlin, has already begun talks with unions about the decision, but did not say if there would be buyouts.

Bayer shares rose more than half a percent to 42.52 euros ($56.23) in Frankfurt trading.