Photo courtesy of Google Maps
GREENFIELD, Ind. — More than 400 employees at Greenfield-based Elanco Animal Health are expected to lose their jobs, officials announced Monday.
Elanco recently announced a “strategic restructuring,” which is estimated to result in the loss of 420 employees, according to a company news release. This was announced after the company reported 2023 financial results and expected 2024 revenue.
Elanco Animal Health is a company that specializes in products and services for the prevention and treatment of diseases in livestock and pets, according to the company's website.
The company is expected to shift resources from its livestock business to its pet medical business, people familiar with the matter said. The restructuring will also focus roles on “strategic locations” and shift the company's business model to distribution and other third-party models in certain markets.
Officials said the company expects to save between $20 million and $25 million in 2024, primarily from compensation and benefits. The release said the funds are “expected to be reinvested in areas with greater return potential” in the future.
“Continuing our efforts to improve efficiency, we today announced that we will continue to move our investments to more important value-creating areas,” Jeff Simmons, president and chief executive officer of Elanco Animal Health, said in a release. We have announced a strategic reorganization.”
“We are prioritizing cash flow improvement, both from improved free cash flow and the expected divestiture of the Aqua business, significantly reducing leverage and investing to strengthen our ramp-up efforts. We believe that the investments we are making in 2024 will lay the foundation for sustainable earnings growth over the medium to long term.”
