Monsanto share price rises as it announces 2,600 job cuts
Shares in seed giant Monsanto rose today after it announced 2,600 job cuts and restructuring operations to cut costs amid a commodity price rout.
The New York-listed group expects to make savings of $275 (£180m) to $300m by the end of fiscal year 2017, at a total cost of approximately $850 to $900m.
Monsanto is also developing plans to reduce its operating spending by an additional $100m, meaning the total annual expected savings could be as much as $400m.
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"The fundamentals of our business are strong and Monsanto remains the best positioned company in the industry. As we look to 2016, focus and discipline become increasingly important," Hugh Grant, chairman and chief executive officer, said.
The company's losses widened to $1.06 a share for the fourth quarter ending August 31, from a loss of 31 cents a year earlier.
Sales of corn seeds and traits, Monsanto's key products, fell to $598m from $630m. And sales at the company's agricultural productivity unit, which includes Roundup herbicide, dropped to $1.1bn from $1.25bn in the quarter.
Monsanto shares were last up 0.27 per cent to $87.78 per share.