Allergan plc (NYSE:AGN) announced another round of layoffs as the company plans on shedding its workforce by more than 1,000 employees.
The pharmaceutical giant unveiled a broader restructuring effort that includes downsizing the number of workers it has by 5%. Allergan added that it plans on cutting an additional 400 positions that are currently open.
The move comes as the company is seeking to reduce costs as it faces competition for its second most important drug in the form of its dry-eye treatment called Restasis. Allergan added that the jobs and positions it is cutting from its workforce revolve mostly around products and categories where the company is slated to lose exclusivity for those drugs in the near future.
The drugmaker added that it expects to take a $125 million charge from the job cuts, mostly related to severance. Most of this charge will be recorded in the fourth quarter of 2017.
Analysts polled by Thomson Reuters believe that the company had roughly $5.8 billion of net income throughout fiscal 2017, as well as an average estimate of $15.9 billion in revenue.
The restructuring program should help save roughly about $300 million to $400 million per year. This amounts to roughly an additional 75 cents to $1 of earnings per share support going forward.
Allergan currently has 18,000 employees in its workforce.
AGN stock gained 0.5% on Wednesday.