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Monday, August 6, 2018

Ironwood announces plans to reduce workforce by approx. 125 employees


Ironwood expects to save approximately $75M-$100M in full year 2019 operating expenses, primarily within SG&A. Ironwood plans to reduce its workforce by approximately 125 employees, primarily consisting of field-based sales employees. Ironwood estimates that it will incur aggregate charges in connection with the reduction in its workforce of approximately $10M-$13M for one-time employee severance and benefit costs, termination fees, and other contract-related costs, primarily in 2018, nearly all of which are expected to result in cash expenditures. In connection with the implementation of the lesinurad test markets, Ironwood previously reduced its workforce in January 2018 by approximately 60 field-based sales representatives.

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