Sanofi spin-off EuroAPI provided further details on its restructuring plan, with the company cutting 550 staffers and divesting two facilities — one in Brindisi, Italy, and the other in Haverhill, UK.
In February, the company launched its four-year restructuring roadmap, dubbed FOCUS-27, which noted that it had layoffs in mind and was considering divesting the two sites because of Sanofi’s reduced API needs.
The company said Wednesday it will move forward with the layoffs and the two sites will be divested by 2027. EuroAPI said it has “already received expressions of interest“ for the two sites. The facility in Brindisi houses its bio-fermentation platform, while the one in Haverhill has a focus on spray drying.
At present, EuroAPI has around 3,650 employees. The workforce cuts will include employees in Brindisi and Haverhill. The company estimates its restructuring will cost around €110 million ($118 million) and €120 million ($128 million) between 2024 and 2027.
The two-site divestments will leave EuroAPI with four facilities: Elbeuf and Vertolaye in France; Budapest, Hungary; and Frankfurt, Germany.
Production at Brindisi was paused in March due to quality control deficiencies, which were found after the company investigated “malpractices at the local level,” the release states. After following a plan by the Italian Health Authorities, EuroAPI expects to slowly resume API shipments and manufacturing at the site in the third quarter of this year.
EuroAPI had launched a strategic review in October 2023 due to slower business, which led to FOCUS-27. The restructuring was unveiled soon after CEO Ludwig de Mot joined the company in January.