Based: Dublin, Ireland
Announced layoffs: 390
Actavis ($ACT) has a track record of cutting jobs to make M&A pay and last year was no exception. The Dublin-based drugmaker snatched up Forest Laboratories and Allergan, beefing up its presence in branded drugs and charting plans for international expansion. But the company also had a few plans for cost synergies up its sleeve and wasted no time in implementing them.
In July, Actavis laid off 190 employees at a Forest facility in Earth City, MO, eliminating positions in distribution, logistics and search and development, among others. The company said it planned to shutter the facility in June, but that the move would not affect employees in Forest's regional sales unit in St. Louis. The cuts came days after Actavis revealed a securities filing showing that half a dozen executives would share $50 million in bonuses after the Forest deal was completed, with up to $136 million in awards if sales goals were met.
Actavis did not stop there. A few months later it kicked off another round of cuts after snatching up Allergan for $66 billion. The company said in December that it would eliminate 200 positions at its Corona, CA-based operations as part of a gradual drawdown that had been going on at the site.
Actavis was quick to point out that no decisions had been made about potential reductions after its Allergan buyout. But the company at the time of the deal said it was aiming for $1.8 billion in annual synergies starting in 2016, and achieving that goal translates into more cuts. Actavis added 11,500 staffers to its 25,000-employee roster through its Allergan buy, and more layoffs could be on the horizon as the companies strive to eliminate redundancies.
Meanwhile, Actavis continues to trim away at the workforce it inherited through its purchase of Forest. In March, the company eliminated 412 positions from its Long Island, NY, job roster, with commercial packaging operations taking the brunt of the cuts. Actavis first announced the layoffs in September and has since reduced Forest's ranks in other states including Missouri.
-- Emily Wasserman (email | Twitter)
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