News

Monsanto announces layoffs

Seed companies are making adjustments as the crop price outlook continues to look bleak.

Monsanto says it’s laying off more than 25-hundred employees over the next year or two as it restructures to make up for losses. The St. Louis-based ag/biotech company lost nearly 500-Million dollars in its fiscal fourth quarter, in large part because of reduced GMO seed sales. It is launching a $3-Billion stock repurchase plan.

Monsanto’s CEO says falling crop prices and the negative impact of foreign exchange rates have affected farmers’ decisions. CEO Hugh Grant says they expect further declines in 2016 but the fundamentals of Monsanto’s business remain strong.

In early September, Monsanto’s rival Syngenta announced it would divest its global vegetables seeds business and launch a $2-Billion stock repurchase plan. In late August, Monsanto gave up its months-long attempt at trying to buy Syngenta.

DuPont, which operates DuPont Pioneer, has lowered its profit outlook.