Valeant plans to shed 10-15% of its workforce to save $800 million
In a letter to employees, Valeant’s chief executive Michael Pearson revealed plans to cut the total workforce by 10-15% across the newly formed company. It is unclear which areas will be targeted, but the cuts will affect staff at both Valeant and Bausch & Lomb, and will include a leadership team reshuffle. Other employees may need to relocate, as Bausch & Lomb’s headquarters will be moved from Rochester, New York to New Jersey. Valeant will remain based in Quebec, and will continue to operate all of its current US manufacturing locations.
In May, Valeant committed to buy Bausch & Lomb for $8.7 billion (£5.7 billion), including taking on $4.2 billion of the US firm’s debt. Valeant hopes the acquisition will combine well with its own eye health business. The takeover will be finalised following final regulatory approvals within the next few weeks. Pearson says the planned reorganisation is expected to save at least $800 million by the end of 2014.