In Light of Bausch + Lomb Acquisition, Valeant Slashing Up to 15% of Combined Workforce
When Valeant Pharmaceuticals announced its acquisition of Bausch + Lomb for $8.7 billion this May, the company was mum as to future organizational plans. In an 8-K filed with the U.S. Securities and Exchange Commission today, Valeant chairman and CEO J. Michael Pearson laid out plans “to reduce headcount by 10-15% across the newly combined company.”
Pearson also outlined severance plans in the filing, noting Valeant and Bausch + Lomb would “honor the respective severance plans currently in place at each company, with the objective of providing individuals with appropriate support during transition to alternative employment.” He added: “Our intention is to treat all departing employees with the support and respect they deserve and to inform all employees of their job status shortly after close.” All remaining employees at both firms will subscribe to Valeant benefit plans as of January 1, 2014, the firm’s chief executive noted.
Additionally, Valeant made public plans to consolidate locations in an effort to streamline operations. The company’s corporate headquarters will remain in Laval, Quebec, with U.S. headquarters and a new U.S. Eye Health business unit in New Jersey. Valeant said its Medicis operation will be relocated to New Jersey and its Obagi operation will remain in California, but as a consolidated Valeant-Bausch + Lomb location. The company said it will continue to operate all current manufacturing locations in the U.S.
Elsewhere in the 8-K, Pearson noted that Valeant expects all remaining regulatory approvals needed to close its Bausch + Lomb transaction will be received in early August. “Once we receive all appropriate approvals, we plan to conclude the transaction as soon as possible and begin the process of clarifying structures and communicating everyone’s position,” Pearson said.