(Sharecast News) – US biopharmaceutical firm Biogen announced that it would trim its workforce by 1,000 jobs on Tuesday, as part of a cost reduction strategy.
The company said the move would facilitate an annual saving of $1bn in operating expenses by 2025.
Its restructuring plan included investing $300m of the projected savings towards new product launches and research and development initiatives.
The announcement of the job cuts coincided with Biogen’s second-quarter earnings report, in which it surpassed Wall Street predictions, but still recorded a declining core business.
It reported a 5% decrease in total revenue compared to the same quarter last year, with Biogen pencilling in a similar decrease for the full-year.
In addition to the restructuring, Biogen was reportedly looking at options for its biosimilar drug business, which generated slightly less than $200m in sales in the second quarter, contributing about 8% of the company’s total revenue.
At 1111 EDT (1611 BST), shares in Biogen were down 4.41% at $264.78.
Reporting by Josh White for Sharecast.com.