Monsanto said Wednesday it will eliminate another 1,000 jobs as it contends with declining seed sales and other challenges.
That brings to 3,600 the total number of layoffs announced by the Creve Coeur-based seed company in the last few months, following October news of 2,600 cuts.
The company said the restructuring will cost between $1.1 billion and $1.2 billion to implement, up from prior estimates of $850 million to $900 million. It says the restructuring will result in $500 million savings annually by the end of fiscal 2018.
It’s not clear how the cuts will affect Monsanto’s operations in the St. Louis area. The company has 3,500 employees at its Creve Coeur headquarters and another 1,000 at its facility in Chesterfield.
Earnings beat estimates, Grant talks Syngenta
Monsanto on Wednesday also reported results for its fiscal first quarter. The company posted a loss of $253 million, or 56 cents per share, for the quarter. Adjusted for one-time items, the loss was 11 cents per share. That beat the loss of 24 cents per share projected by Zacks, which polled nine analysts.
On the company’s conference call, CEO Hugh Grant addressed the pursuit of Swiss chemical maker Syngenta, which Monsanto is again looking to acquire after having three buyout offers turned down in 2015.
He said Monsanto sees “significant” advantages to the prospective merger, but that little progress has been made toward a marriage, characterizing the process as “difficult.”