ALLEGAN, Mich. (WOOD) — Perrigo Company announced on Thursday that it will eliminate 800 jobs globally, but only a few jobs will be cut from the workforce in West Michigan.
During a press conference at the company’s corporate headquarters in Allegan, Perrigo said employment will remain above 4,000 locally and the vast majority of the job cuts will come from a company it owns in South Carolina that “no longer fits Perrigo’s business model.”
The 800 eliminated jobs equals about 6-percent of Perrigo’s workforce.
Along with eliminating jobs, Perrigo said it is buying back $2 billion of shares in order to boost shareholder returns as they continue to fight off a hostile takeover offer from drug company Mylan NV. Officials with Perrigo said about $500 million in shares will be repurchased by the end of the year, boosting earnings by 15 cents a share.
“It is fundamentally irrational to believe that Mylan can run this business better or more profitably than our team.”
“The actions we are announcing today to drive substantial profit growth make the gross inadequacy of Mylan’s offer clearer than ever…It is fundamentally irrational to believe that Mylan can run this business better or more profitably than our team,” said Joseph C. Papa, chairman and CEO of Perrigo Co. “Perrigo is positioned to create substantially more value than the Mylan offer, and on behalf of the Board, I urge all shareholders not to tender.”
Perrigo also announced the promotion of John Hendrickson, formerly the Executive Vice President of Global Operations and Supply Chain, to president.
At the press conference, Hendrickson said they would have made these moves anyways, but they are just making them public because of the Mylan hostile takeover offer.
On Tuesday, Gov. Rick Snyder posted a statement on Facebook saying that a “takeover of Perrigo could to devastating results for Allegan, become a serious blow to Southwest Michigan and a significant setback for the State.”
Gov. Snyder also said Perrigo employs more than 4,000 people in Michigan at its facilities in Allegan and Holland and currently ranks as the sixth largest company in Michigan. Perrigo is headquartered in Ireland.