Monsanto reported Wednesday it would have to eliminate 2,600 jobs as part of a cost-saving plan coming in response to falling sales of its biotech seeds and herbicides.

The job cuts would mean a reduction of the 22,500-strong workforce by 12 percent over the next two years.

The US agricultural company said the move would generate between $275 million (244 million euros) and $300 million in annual savings by the end of the fiscal year in 2017.

Widening losses

Monsanto announced the layoffs as it reported a $495-million loss for its fiscal fourth quarter, compared with a net loss of $156 million in the same period a year earlier.

In late August, Monsanto said it was abandoning its takeover bid for Swiss competitor Syngenta after the latter rejected an offer worth $47 billion.

A merger of the two heavyweights would have made Monsanto the world's largest producer of farming chemicals, on top of being the market leader in the seed business.

hg/jd (AP, Reuters)