Grifols, the Spanish pharmaceutical company specializing in the production of plasma derivatives will lay off 2,300 employees as part of a savings plan to cut costs by €400 million a year, the pharmaceutical laboratory announced in a statement on Wednesday. Most of the workforce cuts will take place in the United States.
The pharmaceutical company will reduce the workforce of its industrial plasma business in the United States, its core business, affecting 2,000 workers by 2023. In addition, in corporate functions, it will also cut staff by 300 people, most of them in the U.S., although around 100 people belong to the team in Spain.
Globally, the laboratory has 27,000 workers. Grifols’ idea is that this savings plan will have an impact as early as 2023, by around 100 million, but especially in 2024, when it will save around 400 million euros a year compared to the costs of 2022. Grifols estimates a one-time charge of approximately 140 million euros to carry out the planned cost-saving initiatives. This cost, which will be accrued in the first quarter, mainly includes severance payments.
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Grifols estimates a one-time charge of approximately €140 million to carry out planned cost-saving initiatives
The savings plan focuses on cost optimization and plasma operations, streamlining corporate functions, and other efficiency improvements, according to the release. The pharma expects most of the measures to be implemented by the fourth quarter of 2023.
Steven Mayer, CEO of Grifols, said that “after a thorough review of our organizational and cost structures, staffing, processes, facilities, systems and incentive plans, we are convinced that these measures are necessary not only to improve our financial performance but also to become a more agile, responsive and efficient organization”.
Mayer added that the action taken by the company “will enable us to gain competitiveness, an essential factor in advancing our long-term strategy in a rapidly changing environment.” Grifols will provide further details on the cost-saving initiative and growth strategy on February 28th, 2023, when it releases its fourth quarter and fiscal 2022 results.
Rhythm Pharmaceuticals appoints ex-Grifols’ senior director of market access as new general manager for Spain
Rhythm Pharmaceuticals recruits talent from the pharmaceutical industry for its management in the Iberian Peninsula. The company specializing in the development and commercialization of peptide therapeutic agents for the treatment of gastrointestinal diseases and genetic deficiencies has appointed former Grifols Mercedes Prior as the new general manager of Rhythm Pharmaceuticals in Spain and Portugal, industry sources have confirmed to PlantaDoce.
The new director of Rhythm Pharmaceuticals will strengthen the company’s commercial presence in Spain, with the incorporation of new drugs and treatments into the system, according to the same sources. Prior holds a degree in Economics and Business Administration from the University of Barcelona (UB). She also holds a Master’s degree in Business Administration from Columbia Business School (USA).
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