Employees’ Perspectives of M&A: A Case Study of Bayer Schering Pharma

Abstract

Merger and Acquisition (M&A) activities continue to rise, despite evidence that the majority of M&A fail to meet the financial and synergistic expectations of shareholders or employees. Special emphasis is usually put on the strategic and financial goals of the transaction. The case of Bayer Schering Pharma is representative of the same prevailing norms -- -to develop synergy and annual savings of EUR 700 million in pharmaceutical business. But for Bayer Schering Pharma, this success came at a cost of more than 6,000 layoffs. More than a year into the M&A, the research study focuses on the uncertainty among the employees. More specifically, the study has attempted to identify the key concerns in terms of employee uncertainties during the M&A process.