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Tuesday, December 11 , 2018, 4:10 am | Fair 42º


Allergan Announces Plans to Lay Off 1,500 Employees, Close Goleta Facility

Irvine-based medical device company says it will pare back its workforce worldwide in an effort to 'refocus resources'

Allergan on Monday announced plans to close its Goleta facility and lay off 1,500 employees worldwide to “refocus resources,” according to the company.

The Irvine-based medical device company will eliminate 13 percent of its global workforce and another 250 vacant positions this year, but no time frame was given for when the local facility would close its doors, according to company spokeswoman Bonnie Jacobs.

She said the Goleta location employs about 300 people, some of whom will be let go or reassigned.

“Some of the jobs that are currently based in Santa Barbara will be relocated to Irvine,” Jacobs told Noozhawk.

The Goleta facility at 71 S. Los Carneros Road is smack in the middle of the footprint for an upcoming residential development, Village at Los Carneros, which was approved by the Goleta City Council last week.

Two other sites will also close, Jacobs said, and changes are slated to save Allergan $475 million in 2015.

News of the layoffs came in the same announcement as the company’s second quarter earnings, which showed a net income of $417.2 million, or $1.37 a share — up from $352.7 million, or $1.17 per share a year earlier.

The elimination of jobs follows a round of layoff notices in January, when the company reduced 150 positions company-wide, including an unknown number in Goleta.

“With continuing strong momentum, Allergan recorded the strongest increase in absolute dollar sales in any quarter in our history, and again delivered sales and earnings per share growth above the high end of our expectations,” Allergan CEO and board chairman David E.I. Pyott said in a statement.

“Furthermore, we are pleased with the progression of key clinical programs into Phase 3 as well as the recent FDA approval of OZURDEX® for Diabetic Macular Edema.”

Allergan, which will employ 10,200 people globally after the reductions, will focus on “highest yielding initiatives,” and cut from sales staff, research and development, and other areas, the company said.

The company is simultaneously fighting off a takeover by Valeant Pharmaceuticals International Inc., which since April has sent three unsolicited proposals to acquire all outstanding shares of Allergan's common stock.

“Allergan's board of directors, in consultation with its financial and legal advisors, have unanimously rejected each of these unsolicited proposals, concluding that each substantially undervalues Allergan, creates significant risks and uncertainties for the stockholders of Allergan, and is not in the best interests of the company and its stockholders,” the company said Monday.

Allergan aims to meet a revenue goal of $12 billion by the year 2019.

Noozhawk staff writer Gina Potthoff can be reached at .(JavaScript must be enabled to view this email address). Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.

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