Please login to the form below

Not currently logged in
Email:
Password:

Parexel to axe up to 850 jobs in restructure

The CRO said it also expects a $45m charge associated with the changes

ReserachContract Research Organisation Parexel has announced major cuts across its global businesses as it seeks to battle 'headwinds' in the coming year.

The US-based firm said it expects to cut as many as 850 jobs in a heavy restructuring programme starting from this year and ending mid-2016.

The cuts will affect positions around the world as it looks to save money in the longer term and comes as it deals with a drop in revenue.

The CRO provides clinical and other services to the pharmaceutical industry but said it has been facing headwinds in recent years. This comes as R&D activity has declined across the board in the industry, with fewer firms using CROs as companies look to save money, and move into a more collaborative R&D model with charities, academic centres and smaller life science firms. 

Josef von Rickenbach, Parexel's chairman and CEO, said: “We are accelerating a number of our ongoing improvement plans, and as a result of these efforts, plan to restructure certain activities.”

He said that these changes will help: “Strengthen the company by increasing our competitiveness in the marketplace, and will help us to deliver long-term sustainable growth in revenue and margins.”

He added: “Our priorities for the new year include solid revenue growth, as well as improved operating profitability and double-digit growth in earnings per share.”

But in the short-term the company is set to take a charge of between $35m - $45m for the redundancies and now expects sales to be between $2.010bn and $2.026bn - down from its prior range of $2.012bn to $2.032bn.

In longer term however the firm said in a statement that it expects to achieve annual pre-tax savings as a result of this charge of between $20m to $30m over the course of 2016.

Article by
Ben Adams

26th June 2015

From: Sales

Share

Tags

COVID-19 Updates and Daily News

Featured jobs

PMHub

Add my company
Life Healthcare Communications

Life is a creative communications agency offering multi-channel solutions for the healthcare industry. We use a storytelling approach to turn...

Latest intelligence

Menopause-thumbnail.png
Breaking the silence: It’s time to talk about the menopause
Using findings from our latest opinion poll, Vicki Newlove outlines why the hidden landscape of menopause may finally be starting to change....
Committing time to making meaningful connections - top 5 tips
Read the second blog of the series looking at key barriers to effective patient engagement in pharma...
News:
Senior Analytics Specialist joins Research Partnership...