Syngenta, a chemical company for agricultural use, announced on Wednesday that it will be cutting over 10% of its workforce at its headquarters in Basel, Switzerland, following a significant decline in its crop protection business this year.
Syngenta, a Chinese-owned enterprise with 60,000 employees worldwide, is expected to impact up to 150 out of its 1,100 positions in Basel.
A spokesperson for Syngenta stated, “Due to a more challenging and continuously difficult economic environment, the company is seeking to reduce its workforce at the Basel headquarters.”
The spokesperson further mentioned, “The plan is to reduce around 150 positions at the Basel headquarters by 2024,” emphasizing that Basel will remain the company’s global headquarters.
Syngenta noted that other markets are also undergoing workforce reductions “to enhance the company’s competitiveness,” but a global layoff plan has not been finalized at this time.
Earlier reports from the company, which produces seeds and agricultural sprays, indicated a 17% decrease in sales and a 36% decline in core operating profits for the first six months of 2024.
Following the pandemic, farmers accumulated a large inventory of seeds and pesticides, leading to significant challenges for the company as farmers continued destocking actions.
Decreases in agricultural product prices also diminished farmers’ purchasing power, particularly in the United States where farmers refrained from using crop spraying agents during heavy rainfall periods.
The spokesperson mentioned on Wednesday, “Agriculture has always been a cyclical industry, but the challenges faced by the market this year are unprecedented, with an unusually tough market in 2024.”
Syngenta was acquired by China National Chemical Corporation (ChemChina) for $43 billion in 2017 and merged with Sinochem Holdings Corporation in 2021.
Earlier this year, due to unfavorable market conditions, Syngenta withdrew its application to list on the Shanghai Stock Exchange worth billions of dollars.
(This article incorporates information from Reuters)