German pharmaceutical and crop science giant Bayer AG announced on Wednesday that it expects higher one-off costs in 2025 due to ongoing litigation provisions and executive buyouts as part of its global restructuring efforts. The company’s revised outlook underscores the continued financial impact of product liability lawsuits and strategic cost-cutting measures.

Rising Litigation Costs Weigh on 2025 Earnings

Bayer now anticipates that special items will reduce EBITDA by €3.5–4 billion ($4 billion) this year, up from a previous forecast of €2.5–3.5 billion. These adjustments primarily reflect provisions for legal claims and buyouts of executives as the company continues restructuring programs aimed at streamlining operations.

During the June–September period, Bayer reported that litigation-related costs alone totaled €934 million, driven by ongoing legal challenges surrounding its products.

Key Legal Setbacks

• In October, the Missouri Supreme Court declined to hear Bayer’s appeal against a $611 million verdict alleging that its Roundup herbicide causes cancer.
• A U.S. court also reinstated a $185 million verdict linked to contamination with polychlorinated biphenyls (PCBs) at a school in Washington state.

Bayer CEO Bill Anderson has reaffirmed the company’s commitment to resolving the majority of glyphosate-related cases by the end of 2026, emphasizing that litigation remains a key focus for financial and operational planning.

Corporate Restructuring and Workforce Reduction

As part of its ongoing efficiency drive, Bayer has cut approximately 13,500 full-time positions, bringing its total workforce to about 88,500 globally. These measures aim to accelerate decision-making and reduce administrative and managerial overheads. The latest job reductions exceed the 12,000 cuts reported in August, highlighting Bayer’s commitment to leaner operations.

Despite these headwinds, Bayer’s third-quarter adjusted EBITDA rose 20.8% to €1.51 billion, exceeding analyst expectations. Growth was driven by the Crop Science division and accounting reconciliation effects, including lower personnel-related expenses.

Core Business Performance and Outlook

Excluding one-off items and currency fluctuations, Bayer reaffirmed its 2025 EBITDA guidance of €9.7–10.2 billion, slightly below last year’s €10.1 billion.

Finance chief Wolfgang Nickl noted that the agricultural market remains “quite dynamic,” but currency headwinds are expected to continue in 2026. Bayer’s performance reflects the company’s ongoing effort to balance litigation costs, strategic restructuring, and operational growth.