Stock Alert: Elanco Animal Health Trading 4% Higher After Announcing Job Cuts

(RTTNews) - Shares of Elanco Animal Health Incorporated (ELAN) are up more than 4% Wednesday morning at $27.98 after the company announced job cuts to reduce costs.

The company today said that it has decided to cut more than 900 jobs across about 40 countries. This is the first restructuring action following the closing of the $6.89 billion acquisition of Bayer's animal health unit.

Elanco expects to generate at least $100 million in annual savings. The company also noted that it has started to de-lever by paying $100 million on its term loan.

The cost of the proposed actions is expected to be between $190 million and $210 million with nearly $170 million to $190 million in severance and about $20 million in asset impairments and other charges.

The stock has been trading in the range of $15.17- $32.66 in the past one year.