Takeda Lets Go of 2,800 Employees to Integrate Newly Acquired Nycomed
Most of the cuts, or 2,100 positions, will be from European offices.
Takeda Pharmaceutical Company says that it will cut its workforce by approximately 2,800 positions by the end of fiscal 2015. Its R&D, commercial, operations, as well as general and administrative segments will all be impacted.
Takeda is planning to consolidate a number of sites and functions, including the potential merger or liquidation of subsidiaries mainly in Europe and a reduction of workforce in the U.S. primarily within Takeda Pharmaceuticals North America. All told, the firm says it will nix 2,100 positions from Europe and 700 in the U.S.
The cost for this plan is estimated at ¥70 billion (about $0.91 billion) between fiscal 2011 and 2015. During this period Takeda expects to achieve cost synergies of approximately ¥200 billion (roughly $2.6 billion). The cost synergy in Europe in fiscal 2014 is now about ¥40 billion (approximately $0.52 billion), ¥10 billion greater than the original forecast announced in May 2011.
Takeda says that the employee cuts will help integrate Nycomed, which it picked up last May for €9.6 billion. “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,” says Yasuchika Hasegawa, president and CEO, Takeda.
The Japanese firm states that Nycomed will help grow its presence beyond its home and the U.S. and into Europe and emerging markets. Taking over the Switzerland-based company will double Takeda’s European sales, CEO Yasuchika Hasegawa said at the time of the takeover.
Takeda is trying to secure its bottom line as generic versions of its blockbuster diabetes drug, Actos, will potentially hit the market this year and significantly dent its own revenue stream. The company anticipates Nycomed adding about €2.8 billion (about $3.59 billion) to its cash flow from revenues including sales from the roflumilast COPD franchise.