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Monsanto, falling profits and more layoffs

Monsanto, falling profits and more layoffs

Monsanto had already announced a major wave of layoffs in October 2015, when the company reported a profit of $ 3.5 billion for the fiscal year, a decrease of about 13.5% from the previous year. At the time, according to Irish magazine Lorcan Allen, "the company said it expects to cut up to 2,600 jobs in the next 24 months with the goal of realizing annual savings of $ 275-300m by the end of 2017."

Profits continued to decline in the first quarter of fiscal 2016, according to a Jan. 6 report from Reuters, forcing even deeper cuts:

- "Monsanto Co. plans to cut another 1,000 jobs around the world, bringing the total expected cuts to a total of 3,600 layoffs, or about 16% of its global workforce, according to a filing document. on the Securities and Exchange Commission. The job cuts are part of a larger plan, already announced, to target $ 500 million in annual savings by the end of fiscal year 2018. "

According to a Jan. 13 Allen report, "Monsanto reported a first quarter operating loss of $ 253 million (€ 233 million), a significant deterioration compared to the $ 243m operating profit generated for the same period of the year. past."

Monsanto has faced repeated protests against business practices and the harm to human health and the environment posed by its products. The March Against Monsanto drew tens of thousands of participants globally in May. Russia to Europe have taken steps to ban genetically modified crops, especially Monsanto corn. Increasing awareness of the carcinogenic potential of glyphosate, the key ingredient in the herbicide Roundup, has also reduced benefits.

Some analysts believe that the share price could fall further. A January 7, 2016 report by Jennifer Lynn, writing for the financial news site Benzinga, cited a note from investment research firm Bernstein, whose analysis suggests that the stock should trade close to $ 84.00 given the poor performance of the company:

"The Monsanto Company earnings update reinforces our bearish view of stocks, highlighting continued decline, weak glyphosate and weak GM seed prices."

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Video: Empathy and Mass Layoffs - Simon Sinek (July 2021).