Biotech and Pharma

Allergan to cut over 1,000 jobs as part of cost-cutting efforts

Key Points
  • Allergan will cut more than 1,000 jobs as part of its cost-cutting efforts, the company said in an SEC filing.
  • Shares of Allergan have fallen 21.3 percent in the last 12 months.
Brent Saunders, CEO, Allergan
Scott Mlyn | CNBC

Allergan will cut more than 1,000 jobs as part of its cost-reduction efforts, the company said in a filing Wednesday.

The cuts will affect employees in commercial and other functions, Allergan said in a filing with the Securities and Exchange Commission. In addition to chopping existing jobs, the company will also eliminate 400 open positions.

Ireland-based Allergan, maker of Botox, expects the move to save it $300 million to $400 million this year. It anticipates the changes will cost $125 million, mainly due to severance expenses, the bulk of which is expected to be recorded in the fourth quarter.

The company said in November that it would undertake a cost-cutting and restructuring program, with CEO Brent Saunders telling analysts on an earnings call that Allergan was still in the planning phases but it saw "potential opportunities to become even more efficient."

Shares of Allergan have fallen more than 20 percent in the last 12 months. They closed down 0.1 percent Wednesday after rising 1.1 percent midday.