Biogen Braces For Cost Cuts As Business Transition Continues

 
• By Jessica Merrill
  
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The company announced a new $1bn cost savings program that will result in 1,000 job cuts; $300m of the savings will be reinvested in new drug launches and R&D.

Biogen is making spending cuts that will impact jobs • Source: Shutterstock

Biogen, Inc. CEO Christopher Viehbacher warned that more cost cutting would be coming and on 25 July delivered on his promise to investors to realign spending to fit the company’s reduced revenues. The company unveiled a new “fit for growth” program intended to generate approximately $1bn in gross operating expense savings by 2025 as part of its second quarter financial update.

Key Takeaways

  • Biogen announced $1bn in spending cuts of which $300m will be redirected to R&D and new launches.

Biogen plans to reduce its headcount by 1,000 as a result, but management did not detail where those cuts will...

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