WSJ: Layoffs on the horizon at Allergan

IRVINE, Calif. — In an effort to show investors that its able to deliver strong earnings growth, drug maker Allergan will be laying off workers and discontinuing some of its drug research, according to the Wall Street Journal. The layoffs will affect 13% of the company's workforce.



The cuts are reminiscent of actions that Valeant CEO Michael Pearson proposed in the event that Valeant and Allergan were to merge. Pearson said back in April that nearly 20% of the new company's 28,000 employees would be layed off if the companies merged.



According to the report, Allergan CEO David Pyott said he had more than 50 meetings with investors that convinced him that the cuts were needed. The company said its restructuring would save $475 million next year and would improve earnings above analysts'expectations in 2015 and 2016.