Layoffs cost Baxter $101M: 7 things to know

Deerfield, Ill.-based Baxter International, a maker of hospital and renal products, spent or set aside $101 million in recent months to lay off employees, according to a Chicago Tribune report.

Here are seven things to know about the issue.

1. Baxter leaders revealed the dollar amount Tuesday during an earnings call.

2. Baxter spokeswoman Deborah Spak would not indicate how many employees will be laid off, but she said the "reductions" are taking place in more than 40 countries, according to the report.

3. The $101 million, which will be given to laid off employees, includes severance costs as well as other support for employees, Ms. Spak said, according to the report. It's separate from the $43 million the company spent or set aside this year for the same purpose before the third quarter, reports Chicago Tribune.

4. Once fully implemented, Baxter officials expect the layoffs to save the company more than $100 million per year.

5. The layoffs come as Baxter continues organizational restructuring under new Chairman and CEO Jose Almeida. Mr. Almeida said during Tuesday's call that the company began the "wave of organizational restructuring" in its global commercial operations and other areas this month, according to the report.

"This streamlining is expected to generate a higher-performing organization along with cost savings … and the opportunity to channel investment in new ways," he said.

6. Aside from the dollar amount related to layoffs, Baxter also reported adjusted earnings from continuing operations of $311 million or 56 cents per share, up from an adjusted income of $225 million or 41 cents per share during the third quarter of last year, according to the report.

7. The company already cut 1,400 jobs in the last few months of 2015.

 

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