Summary
Amgen Inc. announced an expansion of its previously disclosed restructuring plan, focusing on efficiency initiatives in shared services and external expenses. This expansion will lead to an additional reduction of 600 to 1,100 positions, resulting in pre-tax restructuring charges estimated between $100 million and $150 million, primarily incurred in 2015. Cumulatively, the entire restructuring plan, including this expansion, will reduce Amgen's workforce by approximately 3,500 to 4,000 positions by the end of 2015. The total estimated pre-tax restructuring charges are now projected to be between $935 million and $1,035 million. These charges encompass separation costs for affected employees and asset-related charges due to facility consolidation. Investors should note that about 55% of these total charges are expected to involve cash outlays.
Key Highlights
- 1Amgen is expanding its restructuring plan, approved on October 17, 2014.
- 2The expansion targets efficiency improvements in shared services and external expenses.
- 3Additional staff reductions of 600 to 1,100 positions are planned.
- 4These new actions are expected to result in pre-tax restructuring charges of $100 million to $150 million, mainly in 2015.
- 5The overall restructuring plan now aims for a total workforce reduction of 3,500 to 4,000 positions by the end of 2015.
- 6Total estimated pre-tax restructuring charges for the entire plan range from $935 million to $1,035 million.
- 7Approximately 55% of the total charges are anticipated to be cash outlays, primarily for employee separation costs.