Syngenta announces major job cuts at Swiss headquarters — Reuters

Agrochemicals giant Syngenta is slashing over 10% of its workforce at its Basel headquarters, impacting up to 150 of the 1,100 positions in the city, reports Reuters citing the company announcement made on Wednesday last week. The decision comes in response to a pronounced decline in its crop protection business this year, with the Basel site remaining as the global headquarters.

The Chinese-owned Syngenta, which employs 60,000 people worldwide, described the current economic climate as “severe and sustained,” necessitating workforce reductions to enhance corporate competitiveness. Although job cuts are also occurring in other markets, there is no overarching global job reduction strategy currently in place.

This restructuring is part of a broader response to a 17% drop in sales and a 36% decrease in core operating profit during the first half of 2024. The downturn has been exacerbated by farmers reducing their inventory levels of seeds and insecticides, a trend that began post-pandemic. Additionally, lower agricultural commodity prices and adverse weather conditions, especially heavy rainfall in the United States, have curtailed the use of crop sprays.

Syngenta’s market challenges have been compounded by its financial maneuvers in recent years, including its $43 billion acquisition by ChemChina in 2017 and subsequent integration into Sinochem Holdings Corp in 2021. The company also retracted its application for a multi-billion dollar listing on the Shanghai Stock Exchange earlier this year, citing unfavorable market conditions.

According to Reuters, the spokesperson from Syngenta emphasized the cyclical nature of the agriculture sector and acknowledged the uniqueness of this year’s market downturn, indicating a strategic pivot in the company’s operations to address these challenges.

Source: Reuters