Perrigo Cuts 750 Jobs in Cost-Saving Strategy

Perrigo has announced a global workforce reduction of 750 employees, or 14% of the company’s global workforce, as part of a cost-cutting strategy the company is implementing, according to a company filing with the US Securities and Exchange Commission (SEC). 

The workforce reduction includes 243 employees who have elected to take voluntary early retirement. The changes will vary by country, based on legal requirements and required consultations with works councils and other employee representatives, as appropriate, Perrigo said in its filing.

As part of the strategy, Perrigo estimates recording total pre-tax restructuring charges to its generally accepted accounting principles (GAAP) financial results of approximately $70 million to $80 million, consisting of one-time termination benefits, severance arrangements, and other termination costs. Of the $70 million to $80 million, $5 million to $10 million is expected to be non-cash based. The company anticipates recognizing the majority of these charges by the end of fiscal 2017, with the remaining balance to be recognized during the first quarter of fiscal 2018.

In addition to the workforce reduction, Perrigo’s executive vice president, business operations and chief financial officer (CFO), Judy Brown, is leaving Perrigo to take a position with another company on April 1, 2017. Ron Winowiecki, senior vice president, business finance, was appointed acting CFO, effective February 27, 2017 while Perrigo conducts a search for a permanent CFO, which includes Mr. Winowiecki as a candidate.

Mr. Winowiecki has served as senior vice president, business finance since January 2014. He was formerly vice president, Treasury and Accounting Shared Services between September 2011 and December 2013 and corporate vice president, treasurer between October 2008 and August 2011. Prior to joining the company, Mr. Winowiecki was chief financial officer of Innotec Company from 2004 to 2008. He also has held a series of leadership roles in accounting and finance at SPX Corporation and Donnelly Corporation.

Source: Perrigo SEC filing

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