Parexel axing 850 jobs in big reorg
- Parexel is eliminating 850 jobs as part of a large-scale restructuring effort designed to make the company more productive and efficient.
- Parexel employs approximately a little less than 17,500.
- The company expects to take a charge of $30 million to $40 million associated with the layoffs.
Although Parexel will be taking an upfront charge when it lays of the 850 workers who are slated to go, ultimately the move will result in annual pre-tax savings of between $20 million to $30 million in fiscal year (FY) 2016 and $50 million to $60 million once the move is fully completed, in terms of the larger restructuring plans.
Although the company has lowered sales expectations for the fourth quarter of FY 2015 from a range of $520 million to $540 million, to $517 million to $533 million, it is raising its long-term adjusted operating margin from 12% to 14%, to 13% to 15%.
- Pharma Times PAREXEL to shed 850 jobs in restructure