Elanco continues to restructure its business following its acquisition by Bayer Animal Health in 2019 for US$7.6 billion.
The latest announcement details eliminating about 380 positions, including approximately 20 per cent of Elanco’s senior management. The company employs over 10,000 people world-wide.
The company says it plans to realize “significant financial gains” through several major changes, including consolidating commercial operations for Elanco International and Elanco Europe into one organization and accelerating delivery of the company’s late-stage pet health pipeline, Elanco says.
Compensation and benefits savings for 2022 are anticipated to reach approximately US$60 million. Once fully implemented, the overall restructuring is expected to provide annual savings of approximately US$70 million. The company says, the savings will be used, at least in part, to support new product launches and increase its investment in the Chinese market.
The news is not a surprise, as the goal of restructuring was announced soon after the Bayer Animal Health purchase, but the press release points to the company’s increased focus on the pet market.