BayWa Faces Drastic Restructuring Amid Financial Turmoil

BayWa, Germany's leading agricultural trader, is embarking on a significant restructuring plan, involving the reduction of 1,300 jobs and closure of 26 locations. This move is driven by the need to manage mounting debts, a consequence of rapid, credit-fueled expansion. With interest rates rising and economic conditions worsening, BayWa finds itself in a deep financial crisis.

Key international assets are being sold off to focus on core operations and alleviate the financial burden. The restructuring, advised by the consulting firm Roland Berger, aims for a revitalized BayWa by 2027. Negotiations with the general works council are ongoing, with a resolution expected by March 2025.

Once led by Klaus Josef Lutz, who spearheaded the aggressive growth strategy, the company is now under the restructuring leadership of Michael Baur. BayWa's focus will shift back to its core business areas: agriculture, construction materials, energy, and technology. Despite these challenges, the company aims to retain 6,700 of its full-time roles, safeguarding its pivotal role in Germany's agricultural supply chain.