Amgen cutting up to 15% of workforce

Amgen Inc. (NASDAQ:AMGN) reported 2Q14 financial results Tuesday that beat the Street but the bellwether also unveiled plans to reduce headcount by about 12-15%, or 2,400-2,900, companywide through 2015. Amgen plans to close its facilities in Washington state and Colorado, which are primarily R&D and process development related sites. On its earnings conference call, Amgen said it expects the restructuring to improve cost structure and reduce layers of management, and increase managerial spans of responsibility. Amgen said it will take a pre-tax GAAP charge of $775-$950 million in 2014-15 but reduce operating expenses by about $700 million in 2016 compared with 2013. The company said it plans to reinvest the savings in worldwide launches of new products, including biosimilars.

Amgen reported 2Q14 adjusted EPS of 2.37, up 25% from $1.89 and above the Street's $2.07 estimate. Revenues for 2Q14 grew 11% to $5.2 billion and topped the Street's $4.9 billion estimate. SG&A was down 12% in the quarter to $1.1 billion. The company raised its 2014 revenue guidance to $19.5-$19.7 billion from $19.2-$19.6 billion and its adjusted EPS guidance to $8.20-$8.40 from $7.90-$8.20. Savings from the restructuring are included in the 2014 guidance. ...