By Islam El-Sakka
Pharmaceutical giant AstraZeneca has announced a major restructuring programme aimed at cutting costs by 1.5 billion US dollars (£1.1 billion) per year over the next three years. The London-listed company said the savings will be reinvested into its drug pipeline to support a target of 80 billion dollars (£58.8 billion) in annual sales by 2030.
Restructuring Programme
The initiative, named "reshaping for sustainable growth", is expected to incur up to two billion dollars (£1.5 billion) in restructuring charges. AstraZeneca declined to specify where the savings will come from or whether jobs will be affected, stating only that resources will be redeployed and capabilities strengthened across its therapy areas.
Workforce and Locations
Anglo-Swedish AstraZeneca employs 100,000 workers globally, with around 10,000 based in the UK. Its global headquarters are in Cambridge, and other UK sites include research and manufacturing facilities in Macclesfield, Cheshire, as well as locations in London and Speke, Liverpool.
Strong Quarterly Profits
The cost-cutting targets were revealed alongside better-than-expected third-quarter results. Pre-tax profits jumped 22% to 3.96 billion dollars (£2.9 billion), while operating profits rose 22% to 4.39 billion dollars (£3.21 billion).
Pipeline Expansion
AstraZeneca is advancing more than 180 projects in its pipeline and anticipates about 20 new medicine launches to underpin its 2030 sales ambition.
CEO Outlook
Chief executive Pascal Soriot said the company is on track to deliver its 2030 ambition and sustain growth through the next decade, citing multiple potential blockbuster assets in late-stage development and rapidly scaling transformative technologies.
