by Ann Ruis, Feed & Grain magazine
Indianapolis, IN — Elanco Animal Health Inc. has announced a restructuring that will affect 600 positions across the company, with 300 eliminated, and 300 shifted to other areas or locations.
In its December 9 investor report, Elanco said the organizational changes are designed to generate approximately US$25 million and US$60 million in savings in 2026 and 2027, respectively, as part of its Elanco Ascend productivity initiative.
According to the report, the strategic adjustments include:
*Transforming and investing in innovation: A larger, more complex pipeline requires more capacity, new technical capabilities and increased investment. As such, Elanco is expanding its R&D organization in Indianapolis, refining its regulatory structure and proposing the closure of its Germany animal facility. The company also announces a strategic partnership with The Clinglobal Group to substantially expand capacity and capabilities, while being significantly more cost effective.
Optimizing manufacturing footprint: Elanco will continue to optimize its manufacturing footprint to power its pipeline, adjust to future volume expectations and continue the organization’s productivity journey, including reducing workforce in higher-cost locations.
As a result of the changes, Elanco expects a charge of approximately US$175 million, of which about $130 million is expected to be cash based.
In total, the company expects its Elanco Ascend program to deliver US$200 million to $250 million in adjusted EBITDA savings by 2030, with about 30% achieved in 2026.
To read the entire report click here.
