Baxter International, a maker of renal and hospital products, plans to lay off workers as part of a cost reduction plan aimed at addressing what’s been a challenging time for the company.
The company, headquartered in Deerfield, Illiois, will reduce its global workforce by “less than 5%,” Baxter said in an earnings release Thursday morning. As of the end of last year, Baxter had 60,000 workers globally, including 19,000 in the U.S., meaning a 5% cut would represent about 3,000 workers.
A Baxter representative did not immediately respond to a request for additional details Thursday morning.
“While the opportunities ahead are clear, the journey will involve some difficult decisions,” said Baxter Chairman, President and CEO Jose Almeida, in the release. “We will take these necessary steps with the utmost care and sensitivity, in full knowledge that the passion and commitment of our Baxter team drives our success.”
Baxter in late 2021 acquired Hillrom, a medical equipment and technology company, for $10.5 billion. Last year, Baxter revealed an impairment charge of $3.1 billion related to the Hillrom acquisition, meaning Hillrom was no longer worth what Baxter had paid for it.
In January, Baxter announced it planned to implement a new operating model and spin off its renal care and acute therapies global business units into an independent, publicly traded company.
Baxter also said last year it planned to sell its 645,688-square-foot headquarters in Deerfield to adapt to the hybrid work model many of its employees have chosen during the pandemic. Baxter said, at the time, that though it was selling the headquarters it planned to “stay in the general area.”
Baxter also discussed its fourth quarter and full year results Thursday morning, with leaders noting that they did not meet expectations.
“We did not perform at the level we expected and demand of ourselves, and our ability to advance our mission is grounded first and foremost in our capacity to deliver steady, solid performance as a sustainable corporate enterprise,” Almeida said.
Baxter’s cost reduction program and other changes are expected to generate $300 million in savings this year, the company said.
