Monsanto plans to cut costs by $400 million this year to offset an expected reduction of $400 million in Roundup weed-killer sales, according to the St. Louis Business Journal.
"We recently implemented a number of cost-saving actions across the company," said spokesman Lee Quarles recently, including a hiring freeze, no overtime, less contractor work, and limitations on travel and off-site meetings. "Only ‘business critical’ travel will be permitted."
Quarles said no payroll reductions, such as layoffs or pay cuts, have been implemented other than the hiring freeze, overtime ban, and contractor reductions.
On May 27, Monsanto said that fiscal 2009 earnings would be at the low end of its previously announced guidance of $4.40 to $4.50 a share. The problem? Lower sales of Roundup because of cold, wet weather in the U.S., which led to oversupply and price cutting by generic competitors, particularly Chinese makers.
(Source: St. Louis Business Journal)