Actavis to axe 200 jobs
pharmafile | December 4, 2014 | News story | Medical Communications, Sales and Marketing | Actavis, Allergan, Forest, GSK, Warner Chilcott, corona, stevenage
Actavis is set to cut 200 jobs in the US just weeks after buying Allergan for $66 billion.
The lay-offs will take effect on 2 January at its operations in Corona, California – although no details on what business areas they will affect have been released yet.
Although the cuts are not directly related to the Allergan buyout, this could still be seen as a worrying sign for the latter firm.
The Botox maker signed the deal with Actavis to fend off a $54 billion hostile takeover attempt from Valeant, that it said would create ‘significant risks and uncertainties’ due to Valeant’s record of slashing costs at acquired firms.
Although both companies were enthusiastic about the ‘financially compelling’ deal – with Actavis’s chief executive Brent Saunders saying that the merger would help establish “an unrivalled foundation for long-term growth” and “accelerate our commitment to build an exceptional, sustainable portfolio” – Actavis has a track record of axing employees at acquired firms.
Last year it cut around 30% of its US workforce after acquiring Warner Chilcott, and in July it laid off about 200 employees that had worked for the recently-acquired Forest Laboratories. Allergan itself cut 1,500 jobs in July as part of a restructuring designed to save around $475 million in 2015.
GSK losses
Actavis is not the only pharma firm to cut jobs in the US recently – UK-based GlaxoSmithKline just confirmed rumours that it will shed hundreds of employees in North Carolina as its respiratory business continues to struggle.
Although exact numbers have not been announced it is rumoured that GSK will axe around 900 jobs over the course of 2015, as the company attempts to save around $1.6 billion in annual costs over three years.
GSK adds that it was looking to “consolidate [its] geographic footprint and locate the majority of [its] R&D organisation into two major centers – in the Philadelphia area and Stevenage (UK)”.
George Underwood
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