Takeda Pharmaceutical Co has unveiled a series of restructuring measures which will result in the loss of 2,800 jobs.
The Japanese drugmaker says the moves will "better align its global workforce and consolidate site operations" as part of its integration of Nycomed, the Swiss firm Takeda acquired last year for 9.60 billion euros. Chief executive Yasuchika Hasegawa noted that "while our combined operations in more than 70 countries are more complementary than overlapping, there are a number of areas where we will need to make changes to ensure efficient and flexible operations moving forward".
Takeda plans "the consolidation of a number of sites and functions, including the potential merger or liquidation of subsidiaries" mainly in Europe, and a reduction of workforce in the USA. Of the 2,800 jobs to go, by the end of fiscal 2015, 2,100 will be lost in Europe and the rest will be eliminated across the Atlantic.
The cuts will come across the functions of R&D, commercial, operations and general and administrative positions. The cost to achieve these cuts will be in the region of 70 billion yen, around $913 million.
During this period, Takeda says it will achieve cost synergies of 200 billion yen and in Europe for fiscal 2014, savings will be in the region of 40 billion yen, 10 billion yen more than the original forecast announced in May last year.
The Osaka-headquarted company said it will also shift from having "mature, high-selling products to a more diverse portfolio focused on new products". It will invest strongly in R&D, "while effectively deploying both internal and external resources to create innovative drugs and transform treatment paradigms".
The plan will hit earnings for the year ending March 2012 by 35 billion yen and more details of the restructuring will be unveiled when Takeda presents its financials on February 1. Talks with affected employees and consultations with authorities on a country-by-country basis have started.