160-Year-Old Company Shocking Move: Most of the managers were fired and Gives Employees Full Control! Do you think this will work?

In a drastic move to revive its fortunes, pharmaceutical giant Bayer is eliminating middle management and streamlining its corporate structure. This overhaul aims to save $2.15 billion and comes amidst the company’s ongoing struggles.

160-Year-Old Company Seeks Renewal

• Facing a slump in market value and a challenging acquisition, Bayer is seeking a turnaround.
• CEO Bill Anderson, appointed last year, identified a bloated bureaucracy as a key hurdle.
• The company’s 1,362-page rulebook and hierarchical structure were pinpointed as obstacles to innovation and efficiency.

Bayer Self-Managed Teams

In a radical move to improve efficiency and empower employees, Bayer is undergoing significant restructuring. They are eliminating most middle management positions and transitioning their nearly 100,000 employees into self-managed teams. These large teams, of 5,000 to 6,000 individuals, will operate with a high degree of autonomy, collaborating on projects in 90-day cycles before regrouping. The success of this ambitious plan hinges on effective implementation and fostering a culture of employee ownership.

Empowering Employees, Reducing Costs

• Anderson believes this “dynamic shared ownership” model will empower employees and expedite decision-making.
• The new structure is also expected to generate significant cost savings.
• While the exact number of management layoffs remains unclear, nearly 40% of management roles in the U.S. pharmaceutical division are reportedly on the chopping block.

Success Hinges on the Implementation of Self-Managed Teams

A consumer health company is taking a bold step by piloting a self-managed team concept within its division. While the potential benefits are promising, the true success of this radical restructuring hinges on effective implementation and securing employee buy-in. It remains to be seen whether this shift will deliver the desired results.

Bayer Self-Managed Teams’ bold experiment in self-management is a gamble, but one driven by a need to break free from a sluggish past.

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