Allergan cuts more than 1000 jobs due to competition
January 4, 2018Alergan will have to cut over 1000 jobs from commercial and other functions, the company said on Wednesday.
Allergan said in November 2017 that it would undertake a cost cutting and restructuring program to enable it to achieve 2018 Non-GAAP Performance Net Income per Share levels outlined in that call.
As pointed out by LA Times, the CEO Brent Saunders then announced job cuts as though a generic version of its dry-eye treatment Restasis is about to launch in the beginning of the year.
On Wednesday, the company said in its SEC filing, Allergan finally announced swinging an axe as a reaction to the expected loss of exclusivity of several key revenue-generating products in 2018. The company said it is optimizing and restructuring its operations in early 2018.
Allergan said that it will in addition eliminate approximately 400 open positions. The company said it expects to incur related restructuring costs of approximately $125 million, primarily due to severance, the majority of which will be recorded in the fourth quarter ended December 31, 2017.
“These amounts do not include additional charges related to potential building closures, contract terminations, and other items. The company will achieve additional cost reductions through non-headcount spending rationalization,” Allergan’s announcement reads.
The company added that the overall operating expense savings from this internal restructuring are expected to be in the range of $300 to $400 million as compared to the fiscal year 2017.
LA Times said that the company has about 18,000 employees worldwide, but that the spokesman was not specific about where the company will reduce the workforce.
