Malvern-based Endo Health Solutions said Wednesday afternoon that it will layoff 15 percent of its employees so it can cut annual operating expenses by $325 million per year.
The company also said it would explore "strategic alternatives" for its HealthTronics business and its "branded pharmaceutical discovery platform."
In a statement, Endo said approximately $150 million of the savings are expected to be realized in calendar year 2013, with the rest of the savings kicking in by mid-2014.
"The changes we are announcing today are designed to bring sharper focus to Endo's strategic growth priorities while right-sizing the organization," chief executive officer Rajiv De Silva said in a statement. "We believe these actions will leave Endo with the right cost structure, leadership and execution capabilities to drive sustainable cash flow and earnings growth over time."
Endo has struggled since buying device maker American Medical Systems in 2011 and adverse regulatory decisions and competition related to its opioid painkiller Opana ER. De Silva replace Dave Holveck in March.
"Since joining Endo in March of this year, I have worked closely with the Board and leadership team and solicited input from a wide array of constituents from strategic partners to shareholders to gain a better understanding of Endo's unique portfolio," De Silva said in the statement. "I am convinced that through more focused execution and discipline Endo can and will deliver on our commitments to customers, employees, and shareholders, while continuing to innovate products that make a difference in the lives of our patients. While our work is just beginning, we believe the foundation we are putting in place will provide the framework for more consistent, profitable growth within an evolving healthcare landscape."