AstraZeneca has come out with its list of strategic priorities while the company plans a return to growth and achieve scientific leadership. The actionables being announced during the investors day briefing , introduces a series of measures that would lead to efforts and resources getting rightfully directed towards the businesses priority growth platforms and priority pipeline projects.
One of the key proposed actions – is restructuring of the groups SG & A activities, that will lead to a global reduction in head count of approximately 2,300. The majority of this headcount impact is related to programs under way and has been already communicated to affected employees. These reductions are in addition to previously announced headcount reduction of 1,600 related to the proposed R&D footprint changes, and a restructuring program announced in February 2012, which amounts to 1,150 roles. The total manpower reduction based on these will lead to an estimated global headcount reduction of about 5,050 over the 2013-2016 period.
These manpower reductions are expected to deliver benefits of approximately approximately $800 million per annum by 2016. These manpower reduction programs are expected to incur $2.3 billion in one-time restructuring charges to the P&L, of which $1.7 billion are expected to be cash costs.
On the announcements regarding the strategic priorities and the manpower reductions – Chief Executive Officer, Pascal Soriot said: “ .. In setting out our strategy today, we are making an unambiguous commitment to concentrate our efforts and resources on our priority growth platforms and our priority pipeline projects. As we focus, accelerate and transform our business we know that our success will ultimately be measured by the quality of execution. I’m confident that we have set out on the right path to return to growth and achieve scientific leadership, and I’m equally confident that our people possess the talent, determination and focus to deliver for patients as well as our shareholders.”