Takeda to Cut 2,800 Jobs

Jan. 18 (Bloomberg) -- Takeda Pharmaceutical Co. plans to eliminate about 9 percent of its workforce over the next four years and close some sites after the 9.6 billion euro ($12 billion) acquisition of Swiss drugmaker Nycomed in September.

It will cut 2,800 jobs, mainly in Europe and the U.S., to help yield net savings of about 130 billion yen ($1.7 billion) by the year ending March 2016, the Osaka, Japan-based company said in a statement today. Costs associated with the plan will trim 35 billion yen from net income in the current financial year, it said. Takeda had about 30,000 employees as of Sept. 30.

Takeda said it may merge or sell European subsidiaries as it integrates Nycomed. The Zurich-based company reduced Takeda’s reliance on sales in Japan and the U.S., where first-half revenue declined 10 percent because of the stronger yen, and gave Asia’s biggest drugmaker customers in 42 more countries.

“While our combined operations in more than 70 countries are more complementary than overlapping, there are a number of areas where we will need to make changes to ensure efficient and flexible operations,” Takeda President Yasuchika Hasegawa said in the statement.

The announcement was made after markets in Japan closed. Takeda advanced 0.5 percent to 3,185 yen on the Tokyo Stock Exchange, tracking today’s gain on the benchmark Topix index. The shares have lost 20 percent of their value over the past year, virtually matching the 21 percent drop in the Topix.

Takeda will provide more guidance on the financial impact of its restructuring plan when it reports third-quarter earnings on Feb. 1, it said. The plan includes the elimination of 2,100 jobs mainly in Europe and 700 in the U.S. across research, commercial, operations and administrative functions, Takeda said.

German Jobs

About 1,200 employees of Takeda and Nycomed are affected in Germany, most of which are located in Konstanz, according to a joint statement by IG BCE, a chemicals and energy trade union, and the local workers’ council. Most of the employees in Konstanz are in research and development, the statement said.

From: http://ping.fm/9PA3z