Amgen outlines strategy, will cut up to 4,000 jobs
Amgen has outlined the company's strategy, growth objectives and capital allocation plans, and provided financial guidance for 2015. In addition to the approximately 2,900 positions already set to be eliminated by the end of 2015, an additional 600 to 1,100 jobs will be cut.
Amgen initiated a company-wide re-engineering process in 2013 to ensure clear reallocation of resources to invest in continuing innovation and the launch of a new pipeline of medicines. The company's transformation includes a significant restructuring, with an approximate 23% decrease in facilities footprint and an approximate 20% reduction in staff by the end of 2015.
The next steps of the company's restructuring efforts include plans to reduce headcount by an additional 600 to 1,100 positions in 2015. The additional actions will result in pre-tax accounting charges in the range of $100-$150 million, expected to be incurred primarily in 2015. The total restructuring pre-tax GAAP charges of between approximately $935 million and $1,035 million will be incurred in 2014 and 2015, with $376 million already incurred in the third quarter of 2014. The focused operating model and combined restructuring actions will result in a total annual savings of up to $1.5 billion and an approximate 15-point adjusted operating margin improvement by 2018.