Viatris has announced the completion of a strategic review into its business, saying that it plans to cut around ten per cent of its workforce during the next three years to cut costs.
The drugmaker began the review a year ago and says it expects restructuring-related changes to bring in between $700-850m, as well as to save $600-700m annually once the plans are complete.
Viatris indicated that the restructuring changes will involve inventory write-offs, severance payments, contract terminations, vendor consultations and other modernisation costs in its fourth-quarter and full-year earnings release.
The changes will impact various functions, including the company's commercial teams, research and development, medical affairs and manufacturing. Last year, Viatris reported having a global workforce of 32,000 employees.
In India, the company has been actively addressing the FDA's concerns regarding its plant in Indore.
This follows a warning letter and an import alert issued by the agency in late 2024. Last month, the company announced that it had "substantially completed remediation" at the facility and is now awaiting an FDA reinspection.
The FDA's crackdown on the facility led to Viatris losing approximately $370m in revenue last year, according to the company's earnings release.
In an accompanying investor presentation, Viatris indicated that it anticipates a partial recovery in supply from the plant, which is expected to provide a financial boost for the year.
Additionally, the company recently experienced a fire that shut down its plant in Nashik, India. Although Viatris expects the tablets-and-capsules site to restart in April, this setback is significant because India serves as a major manufacturing hub for Viatris.
During the last year, Viatris reported global sales of $14.3bn, marking a 3% decline from 2024. The company projects that sales will range from $14.45bn to $14.95bn in 2026.