Dive Brief:
- Monsanto announced Wednesday it would be eliminating 2,600 jobs — about 11.8% of the company's entire employee base — and implementing restructuring to aid in cost-cutting. The leading agriculture company Wednesday reported sales in Q4 falling from $2.6 billion to $2.4 billion.
- The worldwide restructuing for the company also means it's leaving the sugar cane business. The company anticipates the early restructing phase to reap $275 million to $300 million in savings by 2017's close.
- Monsanto also reported a $495 million net loss ($1.06 per share) in its fourth quarter. It reported $156 million this same time last year.
Dive Insight:
Core products for the company — corn seeds and traits — dipped to $598 million, down $32 million. Agricultural productivity sector sales (including Roundup herbicide) hit $1.1 billion, down from $1.25 billion. Roundup has received severe scrutiny, including from California's EPA and the World Health Organization.
Cost-cutting measures have been prevalent throughout the food and beverage industry, so Monsanto's plans are in line with that trend. The company also unveiled a $3 billion accelerated share repurchase system in an effort to appease investors. Shares have dipped 27% in 2015.
Monsanto employs about 22,000 regular workers across the globe, according to its website.
The company's shares dipped 4% in premarket trading.