Takeda to Axe 2100 Jobs in Europe

Jan 20, 2012

Takeda has announced “strategic measures to achieve efficiencies for long-term growth”, which includes cutting close to 3000 jobs, 2100 of which will come from Europe. According to Takeda, the measures will better align the global workforce, consolidate operations and help to integrate Nycomed, which the company acquired in September 2011.

A number of sites and functions will be consolidated, including the potential merger or liquidation of subsidiaries (mainly in Europe) and a reduction of the company’s US workforce. Overall, 2800 positions are expected to be axed by the end of 2015. The majority (2100) will be in Europe with the remaining 700 coming from the US. Job losses will mainly occur in R&D, commercial operations and general and administrative functions.

“The combination of Takeda and Nycomed... brought together Takeda’s strong presence in the Japanese and US markets with the legacy Nycomed business infrastructure in Europe and high-growth emerging markets,” Yasuchika Hasegawa, President and CEO of Takeda Pharmaceutical Company, said in a press statement. “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 moving forward.”

Takeda estimates the cost of the measures to be 70 billion JPY ($912 million) during 2011–2015, but the same period will also result in cost synergies of approximately 200 billion JPY ($2.6 billion).

The company is also planning changes to its product portfolio, which will move to centre more on new, diverse products. The combined company of Takeda and Nycomed will have a commercial presence in metabolic disease, gastroenterology, oncology, cardiovascular health, central nervous system diseases, inflammatory and immune disorders, respiratory diseases and pain management. Although R&D sites will be consolidated, support will be ensures for marketed products and the company will invest strongly in R&D focused on core therapeutic areas.

The financial impact of this plan within fiscal 2011 ending March 2012 is estimated at 35 billion JPY ($456 million) downward in income. Takeda is expected to release a revised forecast of its consolidated financial statements in February 2012 when the company reveals its fiscal 2011 Q3 earnings.