GRFS - Grifols cuts 8% staff mainly in U.S. as cost savings plan takes effect
- Grifols, S.A. ( NASDAQ: GRFS ) ( OTCPK:GIKLY ) ( OTCPK:GIFLF ), an operator of plasma collection centers, announced Wednesday that the company would reduce ~8% of its workforce, mainly in the U.S., in a major cost savings program.
- The company estimates annualized cost savings of ~£400M ($427M) from the initiatives, most of which are expected to be complete by Q4 2023, with a one-time restructuring charge of ~£400M in Q1 2023.
- The company expects its 2023 income statement to reflect ~£100M savings and cost savings to be recognized mainly in the 2024 statement.
- Under the first set of measures, Grifols ( GRFS ) plans to reduce ~2K positions in its U.S. plasma operations in 2023, expecting to generate at least ~£200M annualized savings in an attempt to lower cash costs per liter of plasma.
- Read: Seeking Alpha contributor Mare Evidence Lab issued a Buy rating on Grifols’ ( GRFS ) in November, arguing that its rival, CSL Limited ( OTCPK:CSLLY ), was trading at a premium valuation.
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Grifols cuts 8% staff mainly in U.S. as cost savings plan takes effect