Shares of Emergent BioSolutions (EBS Quick QuoteEBS – Free Report) were down 3.1% on Jan 9 after management announced its restructuring plans to strengthen its business performance.
As part of its strategic plans, Emergent will create a new Science and Development (S&D) function that unites research, product development, and clinical teams. It will also reshuffle several of its leadership roles.
Given the above measures, management will lay off 132 roles in the organization representing nearly 5% of the workforce. This is likely to benefit management in the long term as it expects to result in annualized savings of over $60 million. However, the company will incur around $9-$11 million in the first quarter of 2023 associated with the company’s restructuring initiatives.