(MENAFN- AFP) Monsanto said Wednesday it would cut an additional 1,000 jobs as it reported a quarterly loss due to weak demand for agricultural products and the drag from the strong dollar.
The US agricultural giant, which sells seeds, pesticides and chemicals to boost crop output, now plans job cuts of 3,600 through fiscal 2018, up from the 2,600 announced in October, it said in a securities filing.
Total job cuts will account for 16 percent of Monsanto employees worldwide, the company said.
The news came after Monsanto reported a loss of $253 million for its first quarter, ended November 30. Sales tumbled 23 percent from the year-ago level to $2.2 billion.
Results have been hit by falling demand for Monsanto's genetically modified seeds and other agricultural products as farmers have curtailed production in the wake of low prices for corn and other commodities.
The company has also been badly hit by the strong dollar in key markets like Brazil. Monsanto cited the recent currency devaluation in Argentina as a factor in its new forecast that adjusted 2016 profits would come in at the low end of its previously-announced range.
The plan for increased layoffs will increase restructuring costs to $1.1-$1.2 billion from the prior $850-$900 million as the company spends additional funds on severance benefits and to shutter facilities.
"Through focus and discipline, we remain confident in our ability to deliver on the targets and milestones we've established for our company in both the near term and through the next decade," said Monsanto chief executive Hugh Grant.
"In a challenging agriculture environment, we remain in a position of strength. It's this strength that positions us to be a leading partner in an industry that will continue to change."
Monsanto shares fell 0.8 percent to $95.93 in morning trade.
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