All is not well at Monsanto; this Wednesday, it said in a statement that it will lay off another 1,000 workers, bringing the total number of projected job losses over the next two years to 3,600- 16% of its entire global workforce. This move is part of a cost-reduction initiative that was largely brought about by plunging sales in GMO corn seeds, among other reasons.
The “cost-reducing” restructuring efforts will cost it 1.1 billion dollars to implement. Falling corn prices were blamed for the lack of demand for Monsanto’s GMO corn, while the company has reported a 253 million dollar (or 56 cents a share) net loss and a 23% revenue decline. Corn seed sales fell by 20%, while soybean sales rose by 10%.
Further losses are expected, with Monsanto estimating a further 60-70 cents per share in revenue reduction which it has blamed on the devaluation of Argentina’s peso.
“The headwinds from currency and commodity prices that we outlined at the start of this fiscal year have not yet abated and in fact currency has become a much stronger headwind with the recent events in Argentina,” Monsanto CEO Hugh Grant claimed.
Shares in the company have fallen almost 20% in the last year.
This announcement comes as a prominent US politician called for the protection of organic farming and labeling of GMO produce, amid criticism from prominent actors and activists. The company was also revealed to have been conspiring to discredit a teen-activist. Its high costs might come from having to defend itself against allegations of crimes against humanity and its large propaganda budget in future.
Sources: ABC News, St. Louis Post
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