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Valeant to cut staff with Bausch + Lomb buyout

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Upon completion of Valeant’s $8.7 billion buyout of Bausch + Lomb, the new organizational design is expected to reduce the workforce by 10% to 15% across the newly combined company, according to a letter to workers from Valeant CEO J. Michael Pearson. The letter was also filed with the U.S. Securities and Exchange Commission.

Worldwide, Bausch + Lomb employs approximately 11,000 people, while Valeant employs approximately 7,500, according to their respective websites.

Valeant’s integration strategy does not call for reducing the Bausch + Lomb North American field force, according to Pearson’s letter.

“Over $800 million of cost synergies are expected to be realized with a run rate of well north of $500 million to be realized in 2013, and the rest is expected to be captured in 2014, without any reductions in the Bausch + Lomb North American field force or any material changes to other field forces around the world,” Pearson wrote.

Corporate staff will also be impacted, with the number of remaining corporate staff members expected to total fewer than 100, according to the letter.

 Under the reorganization strategy, Valeant will keep the Bausch + Lomb name with the Bausch + Lomb Eye Health business unit headquartered in New Jersey. Dan Wechsler, president of Bausch + Lomb’s Global Pharmaceuticals, will join Valeant as executive vice president and company group chairman. Valeant’s corporate headquarters will remain in Quebec.

Final approvals for the transaction are expected in early August, according to the letter, after which the company intends to finalize structures and employee statuses.