The company proposes cost savings of 400 million euros per year from 2024 and that includes an 8% reduction in the workforce
Grifols has initiated an operational improvement plan with which it foresees cost savings of 400 million euros per year from 2024 and which includes an 8% reduction in the workforce, with layoffs of 2,300 workers, mostly in the United States, although a hundred will be in Spain.
The company has communicated this Wednesday to the National Securities Market Commission (CNMV) that the objective is to “increase its competitiveness, reduce its cost base and improve agility, efficiency and organizational effectiveness”.
The plan focuses on three main areas: optimizing plasma costs and operations, streamlining corporate functions, and other efficiency improvements across the organization, and is scheduled to begin in the first quarter of this year.
The company anticipates that most of the measures will have been implemented before the last quarter of this year and expects an impact of 100 million euros of savings in the 2023 income statement; while the rest will be reflected in the results of 2024.
Grifols’ executive president, Steven F. Mayer, has shown his conviction that these measures are necessary to improve its financial performance and to gain competitiveness.
The coCEOs Victor Grifols Deu and Raimon Grifols Roura have pointed out the impact of the pandemic on the company and that the measures “will guarantee Grifols’ long-term success.” 2,300 LAID OFF
The plan contemplates the dismissal of 2,000 employees in the workforce of the plasma business in the United States and another 300 in corporate functions –among which are the approximately 100 in Spain–.
The company has the objective of reducing the cost per liter through the promotion of digitization, “optimizing donor compensation”, closing inefficient donation centers – 18 have already been closed – and a reduction in controls.
Grifols estimates a non-recurring charge of approximately 140 million euros to carry out the planned cost savings initiatives that will accrue during the first quarter of 2023.
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