Over-the-counter self-care specialist Perrigo is poised to leave hundreds of workers by the wayside as it embarks on the next leg of its corporate journey.
As part of a cost-cutting and restructuring initiative dubbed "Project Energize," Perrigo expects to trim roughly 6% of its total staff, the company said in a fourth-quarter earnings release Tuesday. Perrigo currently employs around 9,000 staffers, according to its website, meaning nearly 550 employees are set to lose their jobs as part of the corporate overhaul.
The “investment and efficiency” program is slated to run for three years, during which time Perrigo hopes Project Energize will boost organizational agility. The program will also introduce changes to the company's infant formula business.
Perrigo said the program is expected to deliver annual savings between $140 million and $170 million by 2026. The company plans to reinvest $40 million to $60 million of those savings.
Restructuring and other related charges are expected to range from $140 million to $160 million, Perrigo added.
Perrigo’s restructuring plan came as the company reported $4.7 billion in sales for its 2023 fiscal year, up 4.6% from 2022. For 2024, Perrigo expects organic net sales growth of 1% to 3%, while it figures total net sales growth will remain “flat.”
Perrigo made history last summer when it converted the prescription approval for its oral contraceptive Opill into an over-the-counter nod. At the time, Perrigo said it planned to make OTC Opill, which has been around since the 1970s, available in the U.S. in early 2024.
Back in 2021, meanwhile, Perrigo took a major step on its quest to become a self-care standout when it sold off its generic prescription business and later used the proceeds to fund the €1.8 billion buyout of consumer self-care company Héra SAS, or HRA Pharma. With the buyout, Perrigo picked up HRA’s three leading consumer meds in blister care, women’s health and scar care.