Elanco Restructuring to Eliminate 900 Jobs
(IIB Photo/Alex Brown)
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowGreenfield-based Elanco Animal Health Inc. (NYSE: ELAN) has announced plans to cut more than 900 jobs globally following its $7 billion acquisition of Bayer Animal Health.
The company says the jobs are primarily in sales and marketing, but also include research and development, manufacturing and quality, and back-office support across 40 countries.
A spokesperson for Elanco tells Inside INdiana Business fewer than a dozen Indiana employees will be affected by the cuts. The company employs some 2,100 Hoosiers at its locations in Greenfield, Clinton and Terre Haute.
In a news release Wednesday, Elanco said the cuts are being made to reduce duplication, drive efficiency and optimize the company’s footprint around the world.
“The team has rapidly applied our historic integration experience to move with speed and decisiveness and capture initial synergies even during the continued challenges created by the COVID-19 pandemic,” said Jeff Simmons, chief executive officer of Elanco. “After our early view of the combined business, we have full confidence in delivering $275 million to $300 million in synergies, with the first two-thirds coming in the first 30 months.”
Elanco says the cost of the moves is expected to be between $190 million and $210 million, the majority of which will go towards severance pay for the affected employees.
“Our team is focused on making the tough decisions that drive value quickly while enabling our innovation and growth strategies. Most importantly, moving so fast in our commercial areas means we now have a larger, stronger team in place supporting customers to enhance our overall commercial competitiveness,” said Simmons. “Today’s proposed actions will ultimately better position us to advocate for our customers, and to deliver solutions to their greatest unmet needs.”
Additionally, Elanco says it has begun de-leveraging efforts by repaying $100 million toward its $4.3 billion loan used to fund the Bayer acquisition.