Bayer is considering spinning off the diversified group's Consumer Health or Crop Science divisions but has ruled out a three-way split as new CEO Bill Anderson seeks to revive its battered share price.
"We considered simultaneously splitting the company into three businesses. We're ruling that option out," Anderson said in a statement today, adding that it could yet retain its three divisions, including its prescription drugs business.
More details will be provided at a capital markets day next March, the company said.
The German maker of medicines, seeds and crop chemicals also said it would remove several layers of management to accelerate decision-making, confirming a Reuters report in September that said job cuts were a prelude to a greater overhaul next year.
Bayer will remove multiple layers of management and coordination for a "significant reduction" in the workforce, it said.
"We are redesigning Bayer to focus only on what's essential for our mission - and getting rid of everything else," said Anderson.
The company also expressed confidence in its full-year guidance but said a strong fourth quarter is needed.
The CEO, who joined from Roche and took the helm in June, is under pressure to boost shares that have underperformed those of its peers, prompting investors to call for various forms of a break-up.
Anderson has previously said he would leave "no stone unturned" in his structural review of the 160-year-old German group and inventor of aspirin.
His appointment was widely welcomed by shareholders as the replacement for Werner Baumann, who had drawn criticism for not responding to capital market concerns.
But some investors have already urged Anderson to act quicker to address the continued share price slump.
Analysts have said Bayer shares are trading at a massive discount to rivals in agriculture, pharmaceuticals and consumer health activities, partly weighed down by a preference among many financial investors for pure-play companies.
Concern over US lawsuits citing an alleged carcinogenic effect of its commonly used Roundup weedkiller is another burden on the stock, which before today was down about 13% this year.
Bayer said its third-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) and adjusted for one-off effects fell 31% to €1.685 billion, hit by lower earnings at its Crop Science division.
That compared with a €1.725 billion average analyst estimate posted on the company's website.
Bayer added that it expects a "soft growth outlook and continued challenges" to profitability next year.
