Staff reductions aimed at cutting costs or, in Perrigo’s case, fending off a takeover bid
Pharma firms Daiichi Sankyo and Perrigo, and speciality chemicals company Cabot are to cut thousands of jobs between them in restructuring efforts.
Daiichi Sankyo is reorganising its US operations and expects to eliminate 1000–1200 US-based sales and commercial positions, mostly from its central commercial office in Parsippany, New Jersey. R&D operations will not be affected, the company said. The move comes in anticipation of losing patent exclusivity for blood pressure drug Benicar (olmesartan medoxomil) in 2016.
Embattled generics firm Perrigo is shipping 800 staff (around 6% of its global workforce) and buying back $2 billion (£1.3 billion) of its own shares in an effort to ‘deliver shareholder value’ that exceeds that being touted by rival Mylan, which is pushing for a takeover deal. As well as cutting staff, Perrigo will consolidate its supply chain activities in Ireland.
Speciality chemicals firm Cabot will eliminate around 300 members of its global workforce of around 4600 over the coming year. The firm is justifying the cuts based on the low oil price, slowing demand in Asia and South America and unfavourable currency exchange rates.