Monsanto launches restructuring program

Monsanto last week announced a massive restructuring program that will streamline its chemical operations, sharply reduce the number of its employees, and result in a $325 million after-tax charge against second-quarter earnings. The restructuring will produce a work force reduction of about 2500 worldwide. The bulk of this will be in the Monsanto Chemical Co. unit, where the firm seeks a 1750-person reduction at several locations. Monsanto will be offering a voluntary early retirement program to employees. If the goals are not met through the voluntary program, however, terminations can be expected. In addition, the restructuring calls for consolidating some manufacturing operations within the chemical unit, and eventually closing several small U.S. plants; reorganizing certain businesses; and selling or withdrawing from some other nonstrategic businesses. Monsanto has not yet made public what businesses it would like to exit. The company also will dismantle the specialties division, and incorporate its ...