Based: Irvine, CA
Announced layoffs: 1,500
Allergan pulled out all the stops last year to fend off Valeant's ($VRX) $53 billion hostile buyout bid, and part of its strategy involved axing jobs.
In July, the Irvine, CA-based company laid off 1,500 employees, or 13% of its global workforce, building on its plan to shed 250 vacant positions to achieve $475 million in 2015 pretax savings. But the move was also intended to put the heat on Valeant, as Allergan attempted to skirt the Canadian drugmaker's unwanted advances. Layoffs, along with other cost-cutting measures, "makes it more difficult for Valeant to demonstrate how a merger can add incremental value" and would force Valeant to pay a greater premium for Allergan, Sterne Agee analyst Shibani Lahotra said at the time.
The job cuts Allergan laid out were primarily geared toward R&D, with "customer-facing personnel" escaping the brunt of the action, the company said in July. And Allergan was quick to reassure investors that the R&D cuts wouldn't affect its aspirations for new launches in the coming year.
But more layoffs could lie ahead as Allergan prepares for life as a combined company with Actavis ($ACT). In November, Actavis swooped in as the drugmaker's white knight, saving Allergan from Valeant's hostile bid with a $66 billion buyout. The deal, which closed in March, added 11,500 staffers to the 25,000 employees Actavis already had, setting the stage for more cuts as the company eyes $1.8 billion in cost savings. There's no word yet on exactly how many jobs will be axed, but stay tuned for the next round of musical chairs.
-- Emily Wasserman (email | Twitter)
Defensive Allergan plots 1,500 job cuts, hikes forecast to fight off Valeant
Allergan trots out buybacks, deals and cuts in new offensive against Valeant buy