Seed and pesticide maker Corteva is planning to lay off around 1,000 employees globally as part of a bigger restructuring plan.
The agricultural giant says it is cutting almost five percent of its 21,000 employees.
Company officials said it intends to leave nearly 35 nations and focus on 110 countries, particularly in 20 of its major regions, such as North America, Europe, and Brazil.
Executive Vice President of Crop Protection Robert King said: “Historically, we’ve tried to be everything everywhere.”
Corteva estimates $400 million in restructuring costs through the second quarter of 2023 as it leaves key markets and product lines.
The Indianapolis-based firm plans to save more than $200 million in run-rate costs by 2025.
Company executives said crop seed and chemical providers such as Corteva and competitor Bayer AG have raised the prices of products sold to farmers to combat their own rising costs.
Corteva officials said that part of the restructuring strategy is to streamline its operations by focusing on five main crop groups: fruits and vegetables, soy, cereals, corn, and rice.
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The company stated it intends to invest around eight percent of its sales in research and development.
Mr. King said: “We’re going to balance the portfolio with new products coming out of the pipeline and filling the gaps with strategic partnerships in biologicals and seed applied technologies.”
The agricultural giant is the latest to announce plans to reduce its workforce as labor, raw material, and transportation prices put pressure on businesses.
Ford Motors said last month that it will lay off 3,000 people, while Goldman Sachs recently announced that it would lay off hundreds more staff.
Source: The Wall Street Journal