The Medicines Company has commenced the implementation of a workforce reduction in its U.S. field-based sales functions to improve efficiencies.
The workforce reduction will result in the company reducing its personnel by 43 employees, representing approximately 26 percent of its field-based workforce. Affected employees will be eligible to receive severance payments, earned 2009 bonuses, healthcare coverage for six months and outplacement services, according to the company, which expects to complete the workforce reduction by the end of February.
The Parsippany, N.J.-based company expects to record a one-time charge of approximately $3.5 million associated with the employee severance arrangements, which will be recognized in the first quarter of this year. Medicines said it expects to realize estimated annualized cost savings from the workforce reduction in the range of $8 million to $9 million starting in the first quarter.