The company proposes cost savings of 400 million euros per year from 2024, including an 8% reduction in personnel
Grifols has initiated an operational improvement plan that envisions cost savings of €400 million per year from 2024, including an 8% headcount reduction, with layoffs of 2,300 employees, mainly in the United States, although there will be a hundred in the future . Spain.
The company told the National Securities Market Commission (CNMV) on Wednesday that its goal is to “increase its competitiveness, reduce its cost base and improve the organization’s agility, efficiency and effectiveness.”
The plan focuses on three main areas: optimizing plasma costs and operations, streamlining business functions and other efficiencies across the organization and is expected to start in the first quarter of this year.
The company expects most of the measures to be implemented before the last quarter of this year and expects savings of 100 million euros in the 2023 income statement; while the rest will be reflected in the 2024 results.
Grifols’ executive president, Steven F. Mayer, has demonstrated his belief that these actions are necessary to improve financial performance and increase competitiveness.
Co-CEOs Victor Grifols Deu and Raimon Grifols Roura have pointed to the impact of the pandemic on the company and that the measures will “guarantee the long-term success of Grifols”. 2,300 DISCARD
The plan provides for the layoff of 2,000 employees in the plasma business in the United States and another 300 in corporate functions, including the approximately 100 in Spain.
The company aims to reduce costs per liter by promoting digitization, “optimizing donor compensation”, closing inefficient donation centers – 18 have already closed – and reducing controls.
Grifols estimates a one-off expense of approximately 140 million euros to implement the planned cost-saving initiatives that will emerge in the first quarter of 2023.
PS
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
