Production & Manufacturing

Allergan to cut over 1,000 jobs to reduce costs

PBR Staff Writer Published 04 January 2018

Irish drug maker Allergan plans to lay off more than 1,000 jobs globally as part of a cost cutting and restructuring program.

The job cuts will affect employees engaged in the company's commercial and other functions.

Allergan said in a US Securities and Exchange Commission filing that it will also terminate nearly 400 open positions.

The company stated that in response to the expected loss of exclusivity of various important revenue-generating products this year, it is streamlining and restructuring its operations in early part of the year.

It added that job reductions related to its commercial operations will mainly focus on products and categories depending on their loss of exclusivity.

The company said that the specific employment reductions and other cost-cutting actions being carried out are in line with its announcement made in November 2017 during the release of its third quarter results.

Reuters reported that the announced job cuts represent more than 5% of the company’s total workforce. The move is being executed over concerns of increased generic competition to its dry eye medicine Restasis (Cyclosporine Ophthalmic Emulsion) 0.05%.

Allergan estimates to incur about $125m in related restructuring costs, mainly due to to severance, with the majority of it to be registered in the fourth quarter ended 31 December 2017.

The company revealed that the amount would not include additional expenses associated with potential closures of facilities, terminations of contracts, and other items.

Allergan plans to make further cost reductions by implementing non-headcount related steps although it did not specify any details about what they are and how much of savings it can pull through them.

Image: Allergan site in Westport, Ireland. Photo: courtesy of ALLERGAN.