Eye-health firm Bausch+Lomb became a subsidiary of Valeant Pharmaceuticals International in May when the Canada-headquartered firm shelled out $8.7bn (€6.6bn) cash. Now, in a memo sent to Bausch + Lomb employees, Valeant has said headcount across the newly combined company will be reduced by approximately 10-15% as part of the integration process.
The memo, filed with the SEC, also reported Valeant is “planning to consolidate locations to streamline operations and improve efficiencies” across the two companies, though assures employees it “will continue to operate all current manufacturing locations in the US.”
This includes Rochester, New York, the 953,000 sq ft manufacturing facility though Valeant plans to move Bausch + Lomb’s headquarters from the site to New Jersey.
Valeant remained vague with details of overseas plant closures and consolidations: “Outside the US our Regional and Country Managers will be responsible for any further consolidations in their respective areas and will follow corresponding legal procedures before decision making and communicating.”
According to Bausch + Lomb’s end of FY2012 report, the company has six manufacturing facilities in the US - other than Rochester - and a number of principle manufacturing facilities in Argentina, Brazil, China, France, Germany, Ireland, Italy and the UK.
Regarding workforce, at the end of 2012 Bausch + Lomb employed 11,000 people across the company. As for Valeant, a breakdown in its 7,000 personnel, reported in its end-of-year filing, includes 3,300 working in production.
If Valeant’s topline job cut estimation is implemented, 2,700 jobs may be lost across the two firms. Though a timeline has not been set, the firm has said severance plans for the US and Canada have been finalized with redundancy plans outside North America set to follow local regulations.
Last September Valeant purchased US specialty pharmaceutical company Medecis for $2.6bn. Three months later, the firm announced it was to cut 200 jobs as part of measures intended to save $275m by the end of 2013.
Jobs targeted included those in sales and marketing, general and administrative expenses, and R+D.
In April Valeant opened its wallet and spent $375m on dermatology firm Obagi Medical Products. “Obagi operation will continue to remain in California, but will be consolidated to one combined Valeant/Bausch + Lomb location,” the company said in yesterday’s memo.