Elanco Announces More Layoffs
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Greenfield-based Elanco Animal Health Inc. (NYSE: ELAN) says it is eliminating 380 positions around the world, including a 20% reduction of senior managers. The company says the move stems from its $7 billion acquisition of Bayer Animal Health, which was completed in August 2020. Our partners at the Indianapolis Business Journal report approximately 100 positions are being cut in Indiana.
This round of layoffs follows the company’s decision announced in January 2021 to cut 330 positions. In 2020, Elanco announced 900 positions in 40 countries were being eliminated.
Elanco says it intends to consolidate its commercial operations for Elanco International and Elanco Europe. It also intends to transform the research and development structure to accelerate new products in the pipeline. The animal healthcare company says it will also consolidate marketing efforts.
The company says the cuts and restructuring are intended to “simplify the organization” to create long-term value.
“While actions that impact our team are always difficult, it is imperative that we simplify our organization and focus on delivering customer value to meet our commitments to improve our profitability, even in the midst of increasing inflationary and supply chain costs,” said Todd Young, executive vice president and chief financial offer.
Elanco says the compensation and benefits savings are anticipated to be approximately $60 million in 2022. Once fully implemented, the company expects to provide annual savings of approximately $70 million.