Making good on a recent promise, Allergan (AGN) disclosed plans to cut 1,000 existing jobs as the company prepares to face generic competition, especially for its second-biggest medicine, the Restasis eye treatment.
The job cuts, which also involve eliminating 400 open positions, are expected to reduce expenses between $300 million and $400 million this year, according to a regulatory filing made on Wednesday. Allergan employs about 18,000 people. Other steps, such as closing buildings, may also occur.
Last November, Allergan chief executive Brent Saunders told analysts that cost cuts were coming. “We will be implementing something as soon as we complete our planning. But rest assured, we will do it rapidly.” Just this week, Mylan (MYL) and Teva Pharmaceuticals (TEVA) launched generic versions of the Estrace vaginal cream, which generated $265 million in sales through the first nine months of last year.
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