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30 November 2021

Elanco Announces Changes to Simplify Organizational Structure, Drive Profitable Growth and Focus Investments on Growth and Innovation Opportunities


  • Streamlining and simplifying organizational structure to reduce complexity and focus investments in priority areas that drive growth and innovation.
  • Eliminating approximately 380 positions, including approximately 20% of Elanco’s senior management, creating a fourth quarter 2021 charge to GAAP net income of $65 million to $71 million and generating approximately $70 million in savings once fully realized to support delivery of the company’s adjusted gross margin and adjusted EBITDA expansion goals.
  • Savings of approximately $60 million in 2022 will help offset added inflation costs, drive incremental productivity savings, and enable concentrated investments driving growth and innovation.
  • These moves are part of Elanco’s company-wide productivity agenda to maintain its value creation trajectory since the Bayer Animal Health acquisition.

GREENFIELD, Ind. (November 30, 2021) Elanco Animal Health Incorporated (NYSE: ELAN) today announced proposed structural changes to simplify the organization as it best positions the company to create long-term value.

The changes are intended to reduce organizational complexity, increase productivity, and enable investment in the highest growth and innovation opportunities, helping to offset previously disclosed higher cost pressures and maintaining the company’s current path to 60% adjusted gross margin by 2023 and 31% adjusted EBITDA margin by 2024. The moves include:

  • Consolidating commercial operations for Elanco International and Elanco Europe into one organization under the leadership of Ramiro Cabral, executive vice president and president Elanco International.
  • Consolidating marketing efforts to simplify and reduce duplication by integrating the centralized marketing organization and concentrating investments in focus brands, digital capabilities, product launches and China.
  • Transforming and simplifying the R&D organizational structure to narrow its focus and concentrate investments on accelerating delivery of the company’s late-stage Pet Health pipeline, while continuing to build the long-term pipeline.
  • Continuing adjustments throughout the remainder of the organization to help drive operational efficiency without directly affecting customer-facing roles.

To view full Press Release, click here.

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