GREENFIELD — Elanco Animal Health on Monday announced plans to cut 420 jobs as part of a "strategic restructuring."
The layoffs will save the company about $30- to $35-million a year, Elanco said in a news release.
Elanco reported a $141-million loss in the fourth quarter of 2023 and losses of $1.2 billion for all of last year.
Jeff Simmons, President and CEO, said earnings took an unexpected hit of about $18 million in the last quarter. He blamed the bulk of the losses on the significant devaluation of the Argentinian peso.
The layoffs and restructuring will "continue the shift of our investments into more significant value creation areas," Simmons said.
"We are investing to enhance our launch efforts, prioritizing cash flow improvements and meaningfully reducing leverage," Simmons said. "We believe that the investments we are making in 2024 will provide the foundation to enable sustained revenue growth over the medium and long term."
Elanco develops products and services to prevent and treat disease in farm animals and pets in 90 countries, according to the Indiana Economic Development Corporation.
Colleen Dekker, a spokeswoman for Elanco, said the restructuring will not impact the company's plans to build a new headquarters on the grounds of the former GM stamping plant in Downtown Indianapolis.
"That project continues to progress on schedule and we expect to move in next year," Dekker said in an email. "Indianapolis is one of the strategic locations we expect to concentrate roles into."
Elanco's new 220,000-square-foot, six-story office building and business campus will fill about about half of the 91-acre GM site located near White River State Park.
The headquarters is part of Elanco's plans to invest $300 million in the state, the company said.
Contact WRTV reporter Vic Ryckaert at victor.ryckaert@wrtv.com or on X/Twitter: @vicryc.
