Monsanto To Cut 1,000 More Jobs As Revenue Declines
January 6, 2016 Monsanto Co., buffeted by a weak agricultural economy, warned of lower profits in the year ahead and said it plans to step up job cuts and restructuring plans, reports Jacob Bunge and Chelsey Dulaney, The Wall Street Journal.
The world’s largest seed maker by revenue said brisker sales of soybeans to South American farmers and fast progress on previously outlined cost-reduction plans helped it report a smaller-than-expected first-quarter loss. But Monsanto said it continued to struggle against punishing currency swings and a slump in major crop prices that has curbed farmers’ incomes and spending.
“Currency has become a much stronger headwind with the recent events in Argentina,” said Hugh Grant, Monsanto’s chief executive, referring to the country’s move in December to devalue its currency.
Though the move by Argentina — a major South American market for Monsanto — will boost its agricultural sector over the long-term, Grant said, it will push Monsanto’s 2016 profits to the lower end of the company’s projected range.
The St. Louis company said it intends to ramp up its restructuring efforts and cut another 1,000 jobs after unveiling plans in October to eliminate 2,600 positions. The company anticipates recording $1.1 billion to $1.2 billion in restructuring charges, up from $850 million to $900 million previously forecast.
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