The multinational seed and pesticide corteva Agriscience announced this week that it will leave approximately 35 countries. In addition, the company will also suspend the layoff contract of about 5% of employees globally, with the aim of cutting costs in order to face the economic crisis.

According to Corteva Agriscience's chief financial officer, Dave Anderson, the idea is to reduce planned spending and implement measures to protect the company's margins in the face of rising raw material costs. "We don't believe that (inflation) is decreasing," Anderson said at the u.S.-based company's annual investor meeting on Tuesday, September 13.

The increase in inflation that reaches even the most developed countries in the world this year, reaching the highs of the last four decades. According to the executive of Corteva Agriscience, even if the cost pressure decreases next year compared to the levels seen in this 2022, the advance in prices will still be significant.

Corteva's plan will be to serve about 110 markets, which represent 95% of the agrochemical and seed giant's revenues. Among these, the company will focus on 20 countries considered strategic, including Brazil, Canada, the United States, Western Europe and India. 

With this reorganization, Anderson said, it is expected to save more than $200 million by 2025. Corteva Agriscience projects net sales of between $19.5 billion and $20.5 billion in the same period, and about 8% of that will be invested in research and development.

Source: Agrolink