Elanco to Cut 250 Jobs in 'Restructuring'
GREENFIELD - Greenfield-based Elanco Animal Health Inc. (NYSE: ELAN) has announced plans to eliminate about 250 jobs as part of a restructuring effort. The company said in a news release Monday it expects to see at least $12 million in savings next year as a result of the move.
Elanco, which recently marked one year since its Initial Public Offering, says the job cuts are part of actions being implemented to "enhance productivity and drive efficiency. The actions include cuts from existing research and development operations in Prince Edward Island in Canada, ending certain operations at its site in Wusi, China, as well as streamlining operations at its Speke, England location.
"Our board and management team continually assess our organization to identify and execute opportunities to become a fit-for-purpose animal health company," said Todd Young, chief financial officer of Elanco. "While decisions that affect our team are difficult, today’s action will tighten our focus, centralize and strengthen key capabilities, and increase our agility to quickly meet the changing needs of our customers in a dynamic, global market. At the same time, these actions advance our productivity agenda and our margin expansion efforts, driving greater efficiency within our global footprint and allowing Elanco to focus investments in our growth areas."
A spokesperson for Elanco tells Inside INdiana Business the impact of the announcement will be felt primarily outside of Greenfield. "We are continuing to grow here in central Indiana as we build new capabilities required as an independent company."
Elanco says the restructuring will cost approximately $50 million, with the majority being incurred this quarter and the remainder being incurred next year.
Just last month, Elanco announced plans to acquire Germany-based Bayer AG's animal health business in a $7.6 billion deal. The acquisition would make Elanco the second-largest animal health company by revenue. Company officials hope to close the deal by mid-2020.