Novozymes Cuts Jobs, Says U.S. Policy, Monsanto Deal Pose Risks
by Jacob Gronholt-Pedersen and Teis Jensen (Reuters) To cut 198 jobs, invest more in emerging markets; Says could take time to return to past growth rates; Bayer takeover of Monsanto, US energy policy pose risks; Q4 earnings beat expectations, to buy back shares — Enzymes maker Novozymes will cut 198 jobs and invest more in emerging markets, it said on Wednesday, adding it could time take to recapture past growth rates amid uncertainty over U.S. renewable energy policy and the takeover of a key partner.
The Danish company’s business flourished after being spun off from drugmaker Novo Nordisk in 2000, but a lower oil price in recent years has hit demand for its enzymes used in detergents, animal feed and in the production of biofuel.
Novozymes, which had 6,441 employees at the end of 2016, said it would increase investment in innovation and expand in South East Asia, Africa and the Middle East, but that would take time to boost revenues.
He (Chief Executive Peder Holk Nielsen) also said the U.S. market for biofuels faced uncertainty, as incoming U.S. President Donald Trump could scale back a program designed cut greenhouse gas emissions that requires energy firms to blend ethanol and biodiesel into gasoline an diesel. READ MORE