Managing Restructuring

In 2010, Biogen Idec announced a number of strategic, operational and organizational changes aimed at increasing our focus, enhancing our efficiency and leveraging our company’s strengths to provide a solid framework for growth. These internal changes allow us to be more nimble, focus on what we do best and better address the needs of our patients.

As part of this process, we reallocated resources within Research and Development to maximize investment in our highest-potential programs, focusing on neurology and leveraging our strengths in biologics. We also identified non-core development programs, such as our oncology and cardiovascular programs, and decided to either terminate or sell off these programs. As a result of this streamlining process, we made the difficult decision to reduce our headcount by 13 percent and consolidate our facilities, including closing our San Diego facility.

We are committed to the fair treatment of affected employees and worked to make these restructuring changes in a respectful, responsible and transparent manner – those employees who were affected were promptly notified by their line managers and a representative of human resources. Where possible, we offered employees reassignments and/or relocations; of the nearly 100 employees who were offered a new position and/or relocation, 50 percent accepted. We also provided competitive and fair severance packages and continue to offer outplacement services, including counseling and job search assistance. Eighty-two percent of those affected have actively participated in the job search assistance programs; of those, more than 37 percent had found another job as of March 2011.