Allergan Inc, on Monday announced that it is planning to cut down 13 percent of its work force, which include job of 1500 workers, in order to increase profits over the next six years. This job cut would not have an effect on the main plant that is located in West port and co Mayo, which has a staff of 900 workers. This will help the organization in convincing investors that a standalone company has a better value. It will facilitate them in making 20 percent growth between the time periods of 2014-2019. The company had expected a 2014 profit of $5.64 to $5.73 per share, with earnings growth of 20 per cent to 25 per cent in 2015.
Valeant, the rival of Allergan offered $52 billion for the company but Allergan refused. They said that the acceptance of that proposal will affect the development of the company and it was not in the best interest of share holders. On the other hand, Valeant was saying that they will increase the profit by cut cost and now Allergan is saying that we can do it by ourselves as well.
According to, JPM Morgan analyst, Chris Scot, this cut down is of 5 to 10 percent which is more than expectation. Consequently, the company should deserve superior appraisal. This reformation will take away 250 vacant positions with it and will give guarantee earning of 10 percent shares in 2016