The makeover of Allergan Inc.’s operations in Irvine continues, with 1,100 jobs expected to be trimmed by next month.
And new workers are on the way, according to its new owner, Actavis plc.
“Actavis is committed to maintaining a strong presence in Irvine,” company spokesman David Belian told the Business Journal. “The site will host more than 2,000 employees.”
A rough estimate of Allergan job totals and recent filings on layoffs indicate that between 500 and 1,000 jobs could be added to the company’s Irvine hub.
The timing on any new jobs shifting to Irvine remains uncertain, though, so the local workforce appears likely to shrink for a time. The pending job cuts—577 positions on June 4, according to a filing with the state’s Employment Development Department—will mean that employment on the leafy campus has fallen by 40% since a takeover battle for the drugmaker started last year.
Allergan executives said last summer that 1,500 jobs, or about 13% of its companywide total, would be slashed. The pledge came as it sought to boost its earnings outlook during a battle against a hostile takeover attempt by Canada-based Valeant Pharmaceuticals International Inc. and activist investor Bill Ackman’s Pershing Square Capital Management LP.
The layoffs, which began in October, will bring at least one form of basic change to the Dupont Drive campus—it will no longer be the headquarters of the publicly traded company.
Name Change
Actavis has decided to take the Allergan name, but it will be the surviving corporate entity. Chief Executive Brent Saunders will continue in charge of the combined operations, and the company will keep its global base in Dublin, Ireland, with a U.S. headquarters in Parsippany, N.J.
David Pyott, who led Allergan for 17 years, retired after the sale (see his OC 50 entry in pullout Special Section, related story, page 1).
No employees are named in the filing, but it does include the positions of some of Allergan’s better-known corporate executives, starting with the chairman and chief executive posts held by Pyott. Other jobs eliminated included the chief scientific officer’s post held by Scott Whitcup, the chief financial officer’s position, most recently filled by Jim Hindman, and the general counsel’s title that had been held by Arnold Pinkston.
Some former Allergan executives have already landed new positions—Matthew Maletta, who served as vice president, associate general counsel and secretary, was named chief legal officer of branded and generic drugmaker Endo International plc, centered in Philadelphia, in late April.
Allergan’s local operations included the entire corporate staff from its days as an independent, public company, including a raft of positions a rung or two down from the corner offices. Those types of jobs—spread over departments such as human resources, investor relations, finance, corporate affairs, public relations, government affairs and business development—are often lost to consolidation after a company is acquired.
The company’s Dupont Drive campus also houses its commercial organization, which includes several areas—marketing, sales and training, for example. Those areas could avoid deep cuts because they provide support for specific Allergan products, which will now complement Actavis’ lineup.
Startups
Another basic change could come to the long-standing research and development operations in Irvine. Initial plans for cutbacks called for a trim of about 700 researchers.
The June cut appears to include about 250 research positions, which would take the total cut so far to nearly 600.
Most of the cuts to research and development have come in Irvine, it appears, although additional layoffs might have taken place at Allergan’s satellite operations in Goleta and Carlsbad.
Industry sources say the loss of research and development jobs could boost the creation of smaller startup companies. Allergan’s been known as a feeder company for a list of medical device executives and entrepreneurs.
The Dupont site “will remain true to its legacy as a center of excellence for research and development,” Belian said.
Allergan’s newest layoff round takes effect a day before the newly combined company is scheduled to take the Allergan name.
