Zoetis to cut jobs, costs after flat earnings report
Zoetis reported flat revenue in the first quarter of 2015, and announced a comprehensive operational efficiency initiative to enhance its long-term competitive position and profitability, which includes slashing $300 million in annual costs by 2017 and cutting at least 20 percent of its workforce.
The company reported revenue of $1.1 billion for the first quarter of 2015, which was flat compared with the first quarter of 2014.
Net income for the first quarter of 2015 was $165 million, or $0.33 per diluted share, an increase of 6 percent compared with the first quarter of 2014. Adjusted net income for the first quarter of 2015 was $207 million, or $0.41 per diluted share, an increase of 8 percent. Adjusted net income for the first quarter of 2015 excludes the net impact of $42 million, or $0.08 per diluted share, for purchase accounting adjustments, acquisition-related costs and certain significant items. On an operational basis, adjusted net income for the first quarter of 2015 increased 14 percent, with foreign currency having a negative impact of 6 percentage points.
Zoetis said it would close 10 manufacturing plants, eliminate layers of management and abandon some of its 300 product lines that aren’t performing well. However, the company said it would not cut back on its sales force or large U.S. plants.