It seems the biotech giant, Monsanto, is struggling as confidence in the future of the company is in question. The world’s largest producer of genetically-modified (GM) crops and their associated pesticides just announced it's plan to slash more than 2,600 jobs worldwide in an attempt to save the collapsing company.
Monsanto, headquartered in the Greater St. Louis, Missouri area, announced:
“…plans also include an expected separation of approximately 2,600 employees over the next 18-24 months. The company is developing further plans to reduce its operating spending by an additional $100 million, which would bring the total annual expected savings to potentially $400 million.”
After the announcement and a full portfolio report came out, Monsanto's share prices fell 4 percent during Wednesday morning's trade, according to the website Sustainable Pulse. This drop has Monsanto's stock down 30 percent from last February when it was at its all-time high. Not only have sales dropped, but Monsanto's attempted takeover of Syngenta AG, the company's Swiss competition, failed, according to the website Sustainable Pulse.
And now investor scrutiny is stronger than ever. While Monsanto's shares dropped $1.06 in the fourth quarter, sales at the agriculture sector of the company, which includes its biggest seller, the herbicide RoundUp, went from $1.25 to $1.1 in the last quarter, according to Monsanto.
With the World Health Organization confirmation earlier this year that glyphosate—a major ingredient in Monsanto's RoundUp—was a “probable human carcinogen” and pressure from scientist, activists and environmentalists to label GMOs, it seems Monsanto's future is in question.