Perrigo Co. plc, a consumer product firm, announced its financial results for the fourth quarter on Tuesday. A significant announcement was the launching of "Project Energize." This initiative is a global investment and efficiency plan designed to spur the next level of capacities and organizational flexibility.
This plan is the next phase of Perrigo's advancement in the field of self-care, moving towards becoming a unified Perrigo entity. This move comes after the company successfully transformed into a dedicated consumer self-care organization.
The program, which will span over three years, is expected to bring substantial improvements to the company's long-term business performance. It is envisaged that this initiative will increase their organizational flexibility and mitigate impacts from boosting and reinforcing the infant formula business, enabling their unified growth strategy.
Project Energize will commence in the first quarter of 2024, in compliance with local law and consultation requirements. It is anticipated to yield an annual pre-tax savings of about $140 million to $170 million by 2026.
The restructuring processes as part of Project Energize will likely lead to an approximate 6% net reduction in the total number of Perrigo roles.
Restructuring and connected charges associated with these activities are estimated to range between $140 million to $160 million. It is expected that these charges will be primarily incurred by the end of 2026.
