Elanco to cut about 350 more jobs in ongoing ‘restructuring’
GREENFIELD, Ind. (Inside INdiana Business) — Greenfield-based Elanco Animal Health Inc. (NYSE: ELAN) says it will cut about 350 jobs globally as part of an ongoing restructuring effort. The company says the move aims to improve operational efficiency following the $7 billion acquisition of Bayer Animal Health last year.
The news comes about four months after the company announced more than 900 jobs would be cut in a restructuring.
As part of the latest restructuring, Elanco plans to close research and development sites in New Zealand and Germany, as well as reduce “duplication and optimize structures in U.S. operations, marketing, manufacturing and quality central functions, and administrative areas.”
Elanco did not immediately answer a question from Inside INdiana Business on whether any of the affected jobs are located in Indiana.
“With a number of milestones achieved since IPO, including the Bayer acquisition, today’s actions are the next step in our commitment to drive operational efficiencies and deliver attractive returns,” Jeff Simmons, chief executive officer of Elanco said in a news release. “As we start 2021, our team is clear on their priorities and brings momentum as we continue to execute and deliver against our expanded and strengthened IPP strategy.”
Elanco says the restructuring is expected to cost between $58 million and $77 million in severance and other cash charges, as well as asset impairments and other non-cash charges. However, the company says the move could save up to $50 million annually in 2022 and beyond.
Last month, Elanco announced plans to move its global headquarters to the former GM Stamping Plant site in downtown Indianapolis as part of an overall $300 million investment. In an interview on Inside INdiana Business with Gerry Dick, Simmons called the move a significant next step in the company’s growth plans.
You can watch the full interview by clicking here.