HEALTHCARE SERVICES group United Drug is to seek about 90 redundancies from its Irish operation as part of a group-wide restructuring programme, the company announced yesterday.
United Drug, which is listed on the Dublin stock market, said that “recognition of an ongoing acute set of economic circumstances” as well as a desire to introduce operational efficiencies following the acquisition of several companies in recent years had forced it to seek payroll savings.
The company said it was currently involved in a consultation process that would see it make up to 5 per cent of jobs across the group and about 10 per cent of jobs at its Irish operations redundant.
The group employs about 900 people in Ireland and 4,500 people worldwide.
The restructuring programme, which is expected to achieve “significant savings”, will also include reduced salaries and levels of bonus payments at a senior level.
United Drug chief executive Liam Fitzgerald’s remuneration amounted to €1.056 million last year. This included a cash performance bonus of €180,000, down 40 per cent on the previous year.
In the year to the end of September, United Drug’s profits rose 5 per cent to €58.5 million, but earnings were held back by the weakness of sterling and a faltering economic backdrop.
In a statement to the Irish Stock Exchange after the close of trading yesterday, United Drug said the redundancies were also the result of its decision to merge its wholesaling and pre-wholesaling divisions. As well as the reduction in senior-level remuneration and the redundancy programme, it is launching a targeted procurement initiative to save money. The group said it would provide further details of its targets for cost-cutting in its next trading statement and at its agm on February 17th.
