On the heels of last week’s successful initial public offering that raised hundreds of million of dollars from investors, pharmaceutical services giant Quintiles disclosed Tuesday in a securities filing that it plans to cut about 400 jobs worldwide this year.
The 400 jobs amount to about 1.5 percent of the Durham-based company’s 27,000 employees around the globe. Quintiles said in a statement that “the size and composition of our workforce routinely fluctuates based on project and business needs. Also, it is equally important to note that Quintiles’ workforce has grown over the last five years.”
Spokesman Phil Bridges declined to comment on the impact of the job cuts on the company’s more-than-2,000 Triangle workers. Bridges also noted the company has 900 open positions worldwide that it is seeking to fill.
Quintiles helps pharmaceutical and biotechnology companies test experimental drugs. It also assists its customers with selling and marketing prescription medicines after they win regulatory approval.
Quintiles reported in the securities filing that the job cuts will save it $15 million to $20 million annually. It also took a $1.9 million restructuring charge in the first quarter as a result of the cutbacks.
When Quintiles filed for its IPO in February, it reported that it has been implementing “periodic restructurings” to cut costs in the face of a competitive landscape that has put pressure on prices.
Last week Quintiles and its private shareholders sold about 23.7 million shares at $40 each in its IPO. About 45 percent of the nearly $950 million in total proceeds went to the major shareholders, including founder and Executive Chairman Dennis Gillings; Quintiles itself netted $489.8 million after fees and expenses.
On Tuesday, Quintiles announced that 3.6 million additional shares were purchased by the underwriters, who fully exercised their option to acquire more shares as part of the IPO. All of those shares were sold by the company’s major shareholders, which include Gillings and four private equity firms.
Quintiles shares rose $1.11 to $44.33 on Tuesday – its high since going public.