Company: Valeant Pharmaceuticals
Based: Laval, Canada
Announced layoffs: About 2,700
Layoffs at Valeant Pharmaceuticals ($VRX) have not been about financial hurdles to be overcome but rather steps on the stairway of business growth. CEO J. Michael Pearson has his sights set on creating a company with $20 billion in annual revenues and has been doing one buyout after another to achieve that. With each one, cutting staff is part of the strategy for paying for the acquisition.
|CEO J. Michael Pearson|
So when Valeant paid $8.7 billion last year to add Bausch + Lomb to the corporate family, Pearson said he expected to squeeze $800 million in costs out of the combined endeavor. To help reach that sizable number, Valeant said it would cut 10% to 15% of the overall workforce, or up to 2,700 jobs from the combined workforce of about 18,000.
It's just how the Valeant process works best. In 2012, it cut more than 300 jobs to save $225 million after its $2.6 billion buyout of dermatology specialist Medicis. In 2010, it shed 1,100 jobs to save $320 million after its merger with Canadian drugmaker Biovail. You get the picture. -- Eric Palmer (email | Twitter)
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