Drug maker Valeant Pharmaceuticals International of Aliso Viejo said Friday it will cut nearly half of its workforce as part of a restructuring plan.
The company said it was cutting 1,250 jobs as part of a a restructuring that includes the sale of its European subsidiaries. Valeant said the divestitures should be completed in the next 12 months.
Valeant had 3,000 workers as of Dec. 31, the company said in its annual report.
Valeant already has cut its U.S. and Mexico employee count by 130 people.
Cutting jobs is the “first step” in Valeant’s plan to bolster profitability, Chief Executive J. Michael Pearson said.
Pearson said in late March that Valeant, which has annual sales of some $870 million, would no longer try to be a global drug maker.
“We are not of enough size to compete and manage successfully in all these countries,” he said.
Pearson was named chief executive in February, replacing Tim Tyson, the company’s boss for the past few years.
A former McKinsey & Co. director, Pearson is a turnaround specialist hired to reverse a slump at Valeant.
