Health Care, Human Resources, and Manufacturing

Drug maker reducing workforce by 14 percent

February 28, 2017
TAGS jobs / Perrigo
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Perrigo receives FDA approval for three new infant formulas
Perrigo’s infant-formula plants in Ohio and Vermont supply store-brand products across the globe. Courtesy Perrigo

A drug maker in the region has announced it will reduce its workforce by 14 percent.

Dublin-based Perrigo, which operates its North American base in Allegan, said yesterday the decrease will impact non-production jobs and be a global initiative.

Perrigo said some of the reductions will be achieved by not filling open positions, a voluntary early retirement plan in the U.S. and “other initiatives.”

The company said the staff reduction is part of an effort to yield $130 million in annual savings by mid 2018.

The overall goal is to streamline costs.

The company also reported preliminary and unaudited financial results for the 2016 calendar year: adjusted net sales of $5.5 billion and adjusted operating income of $1.42 billion to $1.44 billion.

Perrigo expects 2017 net sales to be in the range of $5 billion to $5.2 billion, which it said includes the cancellation of $220 million of unprofitable distribution agreements in its consumer health care international business segment, or CHCI.

John Hendrickson, Perrigo CEO, said his priorities for 2017 include focusing on “the fundamentals of our business: operational execution and efficiency, investment in R&D and disciplined inorganic growth.”

“I anticipate 2017 will include continued growth in our consumer-facing businesses, with improved profitability in our CHCI segment,” Hendrickson.

“We will continue to manage the Rx segment for long-term success by investing in our pipeline. We are further enhancing our corporate governance through the addition of new directors, executing against our cost optimization plan and concluding our strategic portfolio review.”

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