Elanco to undergo $50M business restructuring, eliminate 250 jobs
Since its September 2018 IPO, Elanco has continued to evaluate its capabilities, structure and staffing to meet its goal of being an agile, standalone company, focused exclusively on animal health and delivering on its Innovation, Portfolio and Productivity strategy. As part of this effort, Elanco is implementing actions to "enhance productivity and drive efficiency." The company is announcing its intent to eliminate approximately 250 positions across multiple locations and functions. This includes exiting R&D operations in Prince Edward Island, Canada; ceasing certain operations at the company's Wusi, China site; and streamlining operations at the Speke, England location. The cost of this restructuring will be approximately $50M with approximately $30M relating to non-cash asset write downs. Elanco expects to realize at least $12M of savings in 2020 from this restructuring. An estimated restructuring charge of $38M will be incurred in Q3 2019 with the remaining $12M to be incurred in 2020.