Elanco Animal Health to cut 380 jobs and cut top management by 20% as part of restructuring


Elanco Animal Health Inc. ELAN,
-1.15%
on Tuesday announced it would cut around 380 jobs globally as part of a restructuring aimed at simplifying the organizational structure of the animal health business and focusing investments in priority areas. The job cuts, which represent around 3.7% of the workforce at the end of 2020, will include a reduction of around 20% in senior management. As part of the reduction in senior management, Marketing Director Racquel Harris Mason, Elanco Europe President Dirk Ehle and US Pet Health President Joyce Lee. The company expects to record a fourth-quarter severance charge of between $ 86 million and $ 94 million, which is expected to reduce net earnings per share by 13 to 15 cents. The company expects pay and benefits savings of $ 70 million per year once the job cuts are fully implemented. “While actions that impact our team are always difficult, it is imperative that we simplify our organization and focus on creating customer value to meet our commitments to improve our profitability, even in the midst of rising costs of inflation and the supply chain, ”said the CFO. Officer Todd Young. The stock, which was still inactive in the pre-market, has lost 9.7% in the past three months while the S&P 500 SPX,
-0.26%
gained 2.8%.


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