I said Elan
On Wednesday, the company said it was cutting 14% of its staff. About half of that will come from manufacturing operations in Ireland, with the other half in the U.S. Wasteful spending at the company -- like having offices in Ireland and California, and reportedly using private jets to fly all over the place -- have blemished this comeback kid. Slimming down should help put some cover-up on those missteps.
The company expects the cuts to save $30 million to $35 million this year, and $50 million in subsequent years. For a company previously planning on burning through around $250 million this year, that's certainly not chump change. The cuts will give Elan a little more flexibility with its operations.
Of course, the company could be getting all gussied up in an effort to sell itself. Last month, Elan said it was undergoing a "strategic review." Pretty much anything could come out of that, from selling parts of its assets to one of its partners, Biogen Idec
Elan still has a lot of work to do, especially in convincing patients and doctors that multiple sclerosis drug Tysabri still has a good risk/reward profile. But its crash diet, just like the ones under way at Schering-Plough
Feast your eyes on this beautiful folly:
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Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. Pfizer is a current Inside Value selection and a former pick of Income Investor, where Glaxo still remains a pick. Biogen Idec is a Stock Advisor recommendation. The Fool's disclosure policy hates run-on sentences.