Ariad Pharmaceuticals, headquartered in Cambridge, Mass., and Lausanne, Switzerland, is cutting approximately 40% of its staff positions in the U.S. following its decision to temporarily suspend the marketing and commercial distribution of Iclusig (ponatinib) in the U.S.
The staff reduction includes positions in all major departments, and is part of a broad program taken by Ariad to significantly reduce its corporate operating expenses and extend its cash position.
Ariad expects the workforce reduction to be completed by year-end and will yield pre-tax savings of approximately $26 million in 2014. Restructuring charges associated with these changes are expected to be approximately $5 million in the fourth quarter of 2013. There are no reductions in staff in Europe.
“This reduction in our workforce is a very painful and difficult action in which we are losing highly talented and dedicated employees, many of whom have worked for Ariad for a number of years, but it is a necessary step in strengthening the company financially,” said Harvey J. Berger, M.D., chairman and chief executive officer of Ariad. “I would like to personally express my deep gratitude to all of the employees affected by this reduction and thank them for their contributions to both the company and the cancer patients whom we continue to seek to help.”
Following the reduction, Ariad expects to have approximately 295 employees in the U.S. and Europe.