QIAGEN (QGEN) Launches Productivity Enhancement Program; 8-10% of Workforce to Be Affected
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QIAGEN N.V. (Nasdaq: QGEN) has launched a project to enhance productivity by streamlining the organization and freeing up resources for reallocation to strategic initiatives that will help drive growth and innovation, strengthen its industry leadership position and improve longer-term profitability.
This project aims to eliminate organizational layers and overlapping structures, actions that will enhance QIAGEN's processes, speed and productivity. The vast majority of savings will be reinvested into strategic initiatives that focus on driving the success of automation platforms, particularly the global rollout of QIAsymphony RGQ; adding content to QIAGEN's test menu; and expanding QIAGEN's geographic presence, especially in high-growth emerging markets.
These actions, which will be implemented in 2011 and 2012, are intended to further improve QIAGEN's strong competitive positions in the molecular diagnostics and life sciences markets amid fast-changing conditions.
As a result of this project, approximately 8-10% of QIAGEN's currently 3,800 employees worldwide are expected to be affected. All reductions will be handled in a socially responsible manner with fair and respectful treatment of employees. QIAGEN will consult with works councils and fully comply with local labor laws.
Implementation of this project is expected to generate annual pre-tax cost savings of approximately $50 million starting in 2012, with the vast majority of savings to be reinvested into areas of focus as defined by QIAGEN's strategic initiatives. A pre-tax restructuring charge of approximately $70 million will be taken in the fourth quarter of 2011, of which 30% is expected to involve cash-related charge components. This restructuring charge is not expected to have an impact on QIAGEN's outlook for adjusted earnings in the fourth quarter of 2011 or for the second half and full-year 2011. QIAGEN further anticipates taking a pre-tax restructuring charge of approximately $20 million during 2012 (which is expected to include mostly cash-related charge components) for additional restructuring measures related to this program, and which will generate additional annual cost savings.
This project aims to eliminate organizational layers and overlapping structures, actions that will enhance QIAGEN's processes, speed and productivity. The vast majority of savings will be reinvested into strategic initiatives that focus on driving the success of automation platforms, particularly the global rollout of QIAsymphony RGQ; adding content to QIAGEN's test menu; and expanding QIAGEN's geographic presence, especially in high-growth emerging markets.
These actions, which will be implemented in 2011 and 2012, are intended to further improve QIAGEN's strong competitive positions in the molecular diagnostics and life sciences markets amid fast-changing conditions.
As a result of this project, approximately 8-10% of QIAGEN's currently 3,800 employees worldwide are expected to be affected. All reductions will be handled in a socially responsible manner with fair and respectful treatment of employees. QIAGEN will consult with works councils and fully comply with local labor laws.
Implementation of this project is expected to generate annual pre-tax cost savings of approximately $50 million starting in 2012, with the vast majority of savings to be reinvested into areas of focus as defined by QIAGEN's strategic initiatives. A pre-tax restructuring charge of approximately $70 million will be taken in the fourth quarter of 2011, of which 30% is expected to involve cash-related charge components. This restructuring charge is not expected to have an impact on QIAGEN's outlook for adjusted earnings in the fourth quarter of 2011 or for the second half and full-year 2011. QIAGEN further anticipates taking a pre-tax restructuring charge of approximately $20 million during 2012 (which is expected to include mostly cash-related charge components) for additional restructuring measures related to this program, and which will generate additional annual cost savings.
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