Tripos Completes Reduction in Force for Its Discovery Research Business
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Tripos, Inc. has announced implementation of its reduction in force for its Discovery Research business.
This action coincides with the conclusion of the 30-day consultation period with employees mandated by U.K. law and previously announced by Tripos on Dec. 19, 2005.
The reduction in force is an integral part of Tripos’ plan to streamline and refine its Discovery Research business and associated cost structure.
The company is reducing the number of employees by 76 positions at Tripos Discovery Research Ltd. (TDR) based in Bude, England. Before this action was taken, TDR had 161 employees.
However, half of the employees affected are leaving under a voluntary separation plan. Tripos is offering all affected employees severance packages and is assisting them with outplacement services.
"This was a difficult but necessary decision to ensure the success of the company," said Dr. John P. McAlister, president and CEO of Tripos.
"Tripos values its employees and the contributions they make to the company very highly, so this decision was only reached after careful consideration of our current business needs."
"As our four-year $90 million file enrichment project with Pfizer Inc. drew to a close in December, we reevaluated the staffing levels required to continue to provide our customers with the highest-quality service and concluded that a staff reduction would be necessary."
"This action takes into account all recently closed business deals and near-term pipeline opportunities."
The company also plans to close a 6,000-square-foot temporary laboratory building in Bude and explore alternate uses for or disposition of the excess property.
Tripos estimates that it will incur restructuring charges of approximately $1.8 million associated with the work-force reduction and related costs.
This figure includes $0.9 million for severance and related employee costs and a $0.9 million asset write-off associated with the closure of the temporary laboratory building.
This does not include any other potential asset impairment charges and is subject to change as further analysis is conducted. These charges will be recorded in the first quarter of 2006.
Dr. Mark Allen, senior vice president and managing director of TDR, said, "I am very proud of all my colleagues at TDR and the contributions they have made both to the company and industry."
"I look forward to building upon the foundation they have helped to lay as we continue to provide our customers with high-value discovery research services, actively pursue developing business opportunities, and continue to sign new deals."
