Grifols has launched a $400m savings plan and will lay off 2,300 workers

Grifols, the multinational blood products company, has launched an operational improvement plan in which it expects cost savings of €400m annually from 2024 which includes an 8% reduction in the workforce, with layoffs. 2300 workersMost of them are in the United States, although there are a hundred in Spain.

Today, Wednesday, the company informed the National Securities Market Authority (cnmv) states that the goal is to “increase your competitiveness, reduce your cost base and improve organizational flexibility, efficiency and effectiveness”.

The plan focuses on three main areas: Cost optimization and Plasma Operations, streamlining corporate functions, and improving other efficiencies across the organization, and is scheduled to begin in the first quarter of this year.

The company expects most of the measures to be implemented before the fourth quarter of this year and expects the impact of €100 million in savings on the income statement for 2023; While the rest will be reflected in 2024 results.

Grifols CEO, Stephen F. Meyerconvinced that these procedures are necessary to improve its financial performance and gain competitive power.

CEOs Victor Grifols duet and Raymond Grifols Rora He noted the impact of the pandemic on the company and that the measures “will ensure Grifols’ long-term success.”

The plan considers firing 2,000 employees in the Plasma business’s workforce United State And another 300 in corporate jobs – among nearly 100 from Spain -. The company aims to lower the cost per liter by promoting digitization, “improving donor compensation”, closing inefficient donation centers – 18 have already closed – and reducing controls.

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Grifols estimates a one-time cost of around €140 million to implement savings initiatives of the expected costs to be accrued during the first quarter of 2023, according to the Ep.

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