By Dawn Papple – Inquisitr, 8 October 2015
Monsanto’s profits are slipping and the agriculture giant best known for its GMO Roundup Ready seeds announced Thursday that restructuring will occur, including layoffs. Monsanto missed its fourth quarter earnings and is offering share buybacks, according to Seeking Alpha. The revisions come after the company lost 19 cents per share when they were expected to break even in the fourth quarter.
Monsanto announced that it will cut about one-eighth of its workforce, according to Seeking Alpha, though according to U.S. News & World Report, and others, the percentage of workers who will lose their jobs with Monsanto is closer to 12 percent of the current workforce. The company is also expected to buy back nearly $3 billion in stock, which is nearly eight percent of outstanding shares, according to analysts. Monsanto’s stock has fallen nearly 26 percent this year.
All total, Monsanto plans to lay off 2,600 workers, according to U.S. News & World Report. The St. Louis-based ag giant hopes that the new plan will generate between $275 million and $300 million in yearly savings by the end of the fiscal year in 2017.
The last time Monsanto announced a major layoff was in June of 2009, when around 900 workers lost their jobs. This time, CEO Hugh Grant blames the unfortunate impact of foreign exchange rates and falling crop prices for the lower-than-expected earnings.
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