Case Study BAYER

Bayer aims to sustainably improve performance with new corporate organiza8on

New organiza8onal model aims to reduce hierarchies, eliminate bureaucracy and accelerate
decision-making processes / Joint declara8on: No layoffs for opera8onal reasons un8l the
end of 2026, future concept for Bayer in Germany confirmed
The Bayer Group has started to introduce a new organiza8onal model called "Dynamic
Shared Ownership" (DSO) worldwide, which is intended to reduce hierarchies, eliminate
bureaucracy, streamline structures and accelerate decision-making processes. The aim of the
new model is to make the company much more agile overall and significantly improve its
opera8onal performance. In a joint declara8on, the Board of Management of Bayer AG and
the employee representa8ves on the Supervisory Board have agreed on principles for the
future of the company. This also includes provisions for the significant staff reduc8ons
expected in the course of the restructuring at the Group companies in Germany.
"Bayer is currently in a difficult situa8on for various reasons. In order to quickly and
sustainably improve the performance of our organiza8on and our room for maneuver, dras8c
measures are now necessary. We want to get Bayer back on the road to success quickly,"
explains Heike Prinz, member of the Board of Management and Labor Director of Bayer AG.
"In order to overcome this challenging situa8on, it is crucial that company management and
employee representa8ves pull together and agree on the steps necessary for the future of
the company, as expressed in the Joint Declara8on. Only if we act together and decisively
now can we remove all internal obstacles and put Bayer back on track for future profitable
growth."

"We see a great opportunity in the new opera8ng model“

Arrangements for job cuts in Germany

As in previous restructuring measures, Bayer is offering employees in the German Group
companies severance agreements staggered according to age. The company is also offering
employees whose jobs are eliminated a reflec8on period of up to six months, during which
they will be supported by targeted posi8oning and external placement offers to quickly find
new employment outside the Group that matches their skills and qualifica8ons. If required,
affected employees can also receive individual training measures for the external job market
for up to twelve months. A "Future Skills Academy" is also intended to iden8fy skills relevant
to the future and support employees in acquiring them.

In order to give the employees affected by the loss of their jobs the 8me and security they
need for external reorienta8on and training, the company par8es are extending the job
security by waiving compulsory redundancies un8l December 30, 2026. This also offers the
employees affected by the loss of their jobs more 8me and security for reorienta8on and
training. Employment contracts of employees whose jobs have been eliminated and who
have not le_ the company by the end of 2026 will be terminated for opera8onal reasons on
December 31, 2026 if necessary. "The fact that job security is only being extended by one
year makes it clear that we are in an excep8onally serious situa8on. The risk of compulsory
redundancies at the end of an employment protec8on agreement, which has been rather
theore8cal for 27 years, has thus become a real op8on. Despite the difficult situa8on, we
have found this extremely difficult to accept. However, we agree with the employer that
compulsory redundancies should only be used as a last resort in future," explains Hausfeld.
Your task:
You are a change consultant at Bayer and are now to accompany the change with the help of
the Agile Change Roadmap, which you will learn about in the course.
Design the Agile Change Roadmap.
Select tools and methods for the individual phases. Besides that you will get some tasks
within the course.
Jus8fy your choice.
Show the result.
Conduct a short reflec8on a_er each phase. What was good? What might s8ll be missing?
What have you learned?
Bayer is not only planning to completely redesign the organiza8on, but also to cut jobs.
Please note this special feature.
Sources:
hfps://www.bayer.com/media/bayer-will-performance-mit-neuer-
unternehmensorganisa8on-nachhal8g-steigern/#

hfps://www.kloepfel-consul8ng.com/supply-chain-news/unternehmen/bayer-neue-
unternehmensorganisa8on-7804368/

hfps://www.bayer.com/de/strategie/strategie