Bayer joins ranks of European drugmakers shedding jobs, and slashing costs; AstraZeneca confirms viewing Astra Tech options

German drugs and crop sciences major Bayer (BAY: DE) has announced plans to make annual cost savings of some 800 million euros ($1.09 billion) starting in 2013, which will also worldwide job cuts of about 4,500 by end-2012, tough other posts will be created. The Leverkusen-headquartered company plans to invest its resources even more systematically in growing the company and enhancing its innovative capability.

Bayer’s news comes in a week that saw Switzerland’s two drug majors - Novartis and Roche - also reveal productivity initiatives that include significant job cuts (The Pharma Letters November 17 and 18).

The company recently posted strong third-quarter results, with sales rising 16.1% to 8.58 billion euros and earnings before interest, taxes, depreciation and amortization (EBITDA) – before special items – improved 10.5% to 1.66 billion euros (TPL October 29). The company then said it continues to target currency- and portfolio-adjusted sales growth of over 5%, aiming to increase EBITDA before special items to more than 7 billion euros, and now says that the restructuring will not have an impact on its current year guidance.