Quantcast

Monsanto to Cut 3,600 Jobs as Public Protests Continue to Stymie Profits

Food

While Monsanto seems to tower over the agriculture industry, both in terms of its political power and its potentially detrimental effects on the environment, low earnings are cutting into corporate profits and costing employees their jobs.

Monsanto had already announced a major wave of layoffs in October when the corporation reported a profit of $3.5 billion for the 2015 fiscal year, a decline of about 13.5 percent from the previous year. At the time, according to Irish Farmers Journal's Lorcan Allen, the corporation “said it expects to cut up to 2,600 jobs in the next 24 months with a target to make annual savings of $275-300m by the end of 2017."

A scene from the March Against Monsanto in Denver. Photo credit: MAM

Earnings continued to fall in the first quarter of the 2016 fiscal year, according to a Jan. 6 report from Reuters, forcing even deeper cuts:

“Monsanto Co. plans to slash another 1,000 jobs worldwide, bringing total planned cuts to 3,600 or about 16 percent of its global workforce, according to a filing Wednesday with the U.S. Securities and Exchange Commission. The job cuts are part of a broader, previously announced plan to target $500 million in annual savings by the end of fiscal year 2018."

According to a report by Allen on Jan. 13, “Monsanto reported a first quarter operating loss of $253m (€233m), a significant deterioration compared to the $243m operating profit generated for the same period last year."

Monsanto has faced repeated protests against its business practices and the harm to human health and the environment posed by its products. The annual March Against Monsanto attracted tens of thousands of participants globally in May. Russia to Europe have taken action to ban genetically modified crops, especially Monsanto corn. Increasing awareness of the cancer-causing potential of glyphosate, the key ingredient in Monsanto's Roundup weedkiller, has also cut into profits.

Prior to the latest announcement of their falling earnings, Monsanto stock had reached a one-month high of $99.28, but fell to a low of $89.91 on Jan. 20 before recovering slightly to close at $91.87 at the close of trading last week.

Some analysts believe the stock price could drop even further. A Jan. 7 report from Jennifer Lynn, writing for financial news site Benzinga, quoted a note from investment research firm Bernstein, whose analysis suggested the stock should be trading at closer to $84.00 given the company's poor performance:

“Monsanto Company earnings update reinforces our bearish view of the stock, highlighting continued (and worsening) weakness in glyphosate and weak GM seed pricing."

YOU MIGHT ALSO LIKE

Michael Moore: 'Do Not Send Us Bottles of Water. Instead, Join Us in a Revolt'

Monsanto Slammed for Violating European Patent Law for GMO Melon

5 Ways to Eat Healthy: What Big Food Doesn't Want You to Know

Monsanto Files Lawsuit to Stop California From Listing Glyphosate as Known Carcinogen

EcoWatch Daily Newsletter

Scanning electron micrograph of Yersinia pestis, which causes bubonic plague, on proventricular spines of a Xenopsylla cheopis flea. NIAID / Flickr / CC BY 2.0

A middle-aged married couple in China was diagnosed with pneumonic plague, a highly infectious disease similar to bubonic plague, which ravaged Europe in the middle ages, as CNN reported.

Read More Show Less
Milk made from almonds, oats and coconut are among the healthiest alternatives to cow's milk. triocean / iStock / Getty Images Plus

Dairy aisles have exploded with milk and milk alternative options over the past few years, and choosing the healthiest milk isn't just about the fat content.

Whether you're looking beyond cow's milk for health reasons or dietary preferences or simply want to experiment with different options, you may wonder which type of milk is healthiest for you.

Read More Show Less
Sponsored
Greta Thunberg stands aboard the catamaran La Vagabonde as she sets sail to Europe in Hampton, Virginia, on Nov. 13. NICHOLAS KAMM / AFP via Getty Images

Greta Thunberg, the teenage climate activist whose weekly school strikes have spurred global demonstrations, has cut short her tour of the Americas and set sail for Europe to attend COP25 in Madrid next month, as The New York Times reported.

Read More Show Less
The Lake Delhi Dam in Iowa failed in 2010. VCU Capital News Service / Josh deBerge / FEMA

At least 1,688 dams across the U.S. are in such a hazardous condition that, if they fail, could force life-threatening floods on nearby homes, businesses, infrastructure or entire communities, according to an in-depth analysis of public records conducted by the the Associated Press.

Read More Show Less

By Sabrina Kessler

Far-reaching allegations about how a climate-sinning American multinational could shamelessly lie to the public about its wrongdoing mobilized a small group of New York students on a cold November morning. They stood in front of New York's Supreme Court last week to follow the unprecedented lawsuit against ExxonMobil.

Read More Show Less
Sponsored

By Alex Robinson

Leah Garcés used to hate poultry farmers.

The animal rights activist, who opposes factory farming, had an adversarial relationship with chicken farmers until around five years ago, when she sat down to listen to one. She met a poultry farmer called Craig Watts in rural North Carolina and learned that the problems stemming from factory farming extended beyond animal cruelty.

Read More Show Less
People navigate snow-covered sidewalks in the Humboldt Park neighborhood on Nov. 11 in Chicago. Scott Olson / Getty Images

Temperatures plunged rapidly across the U.S. this week and around 70 percent of the population is expected to experience temperatures around freezing Wednesday.

Read More Show Less
A general view of the flooded St. Mark's Square after an exceptional overnight "Alta Acqua" high tide water level, on Nov. 13 in Venice. MARCO BERTORELLO / AFP / Getty Images

Two people have died as Venice has been inundated by the worst flooding it has seen in more than 50 years, The Guardian reported Wednesday.

Read More Show Less