Perrigo Launches Project Energize To Improve Efficiency, Cut Costs; To Cut 6% Jobs - Update

(RTTNews) - While reporting financial results for the fourth quarter on Tuesday, consumer products company Perrigo Co. plc (PRGO) said it is launching Project Energize - a global investment and efficiency program to drive the next evolution of capabilities and organizational agility.

This move is the next stage of its self-care journey - evolving to One Perrigo. It follows the successful transformation of the company into a pure-play consumer self-care company.

This three-year program is expected to produce significant benefits in the Company's long-term business performance by enabling its One Perrigo growth strategy, increasing organizational agility and mitigating impacts from augmenting and strengthening the infant formula business.

Project Energize will be initiated in the first quarter of 2024, subject to local law and consultation requirements, and is expected to deliver an annualized pre-tax savings in the range of $140 million to $170 million by 2026.

The restructuring activities as part of Project Energize are expected to result in the net reduction of approximately 6% of total Perrigo roles.

Restructuring and related charges associated with these actions are estimated to be in the range of $140 million to $160 million and are expected to be substantially incurred by the end of 2026.