Impax and Amneal are close to reaching an agreement on a merger, The new company reportedly would be called Amneal Pharmaceuticals and based in Bridgewater, N.J. Chirag and Chintu will be stepping down and Impax CEO will remain as it is.
Some of the sources estimated that there will be annual cost savings of about $200 million in three years. This will bring lot of layoff in combined company. Expecting at least 1000 in United States.
First set of laid offs started on 6/04/2018. Amneal terminated about 50 employees with no prior notice.
Not all the savings will come from layoffs, Some of the savings would come from moving production of Impax's drugs that are currently made by other companies to Amneal's manufacturing plants in the US, Ireland and India.
These calculations are not accurate. The companies expects annual synergies of $200 million within three years after the deal closes, which is expected in the first half of 2018.
If you take an average salary of employee to be 80000 USD annually then we 200M divide by 80000 comes to 2500 US based employees. So in my view 2500 employees from new company will get laid off by first half of 2018.