Assertio announces layoffs, leadership changes
LAKE FOREST - Assertio Holdings Inc. Tuesday announced a comprehensive restructuring plan designed to save about $45 million a year. The commercial pharmaceutical company did not say how many people would be laid off.
"To adapt to the current market environment and maximize shareholder value, we are refocusing and substantially reducing our operating footprint, which is expected to result in significant cost savings," said Arthur Higgins, chairman of Assertio.
These cost reductions are in addition to the previously announced $40 million in synergies associated with the recent Zyla merger. The majority of layoffs are expected by the end of the first quarter of 2021. The company said it expects to recognize approximately $8 million to $10 million in severance and restructuring charges in the fourth quarter of 2020 and throughout 2021 as a result of the restructuring plan.
In addition, Todd Smith has decided to resign as president and chief executive officer and from the board of directors at the end of the year in support of the company's significantly reduced workforce, said Arthur Higgins, chairman. Dr. Mark Strobeck, chief operating officer of Assertio, will also resign at the end of the year.
"Given recent changes in our product payer mix as well as the continued near-term impact from the COVID-19 pandemic, we believe that restructuring the business will allow us to continue to provide our differentiated products to patients and better position Assertio for future success," he said.
Dan Peisert, Assertio's chief financial officer, will assume the role of chief executive officer.