AbbVie said that its $63 billion deal for Allergan has at least $2 billion in ‘synergies.’ That should make employees nervous.

US drugmaker AbbVie just announced an agreement to buy pharmaceutical company Allergan for about $63 billion, the latest deal this year in which two big drugmakers are combining in hopes of accelerating growth. AbbVie also highlighted the opportunity for “synergies,” or cost reductions, a common feature of big deals intended to maximize profit and reduce…

AbbVie said that its $63 billion deal for Allergan has at least $2 billion in ‘synergies.’ That should make employees nervous.

US drugmaker AbbVie just announced an agreement to buy pharmaceutical company Allergan for about $63 billion, the latest deal this year in which two big drugmakers are combining in hopes of accelerating growth. AbbVie also highlighted the opportunity for “synergies,” or cost reductions, a common feature of big deals intended to maximize profit and reduce redundancies, especially when the two companies involved have overlapping operations. These types of cost cuts can take many forms, including layoffs. AbbVie said it expects yearly cost reductions of at least $2 billion in the third year after the deal is completed. An AbbVie spokeswoman said in an email to Business Insider that the company hasn’t provided any specifics about job cuts tied to the deal. Read more: AbbVie’s $63 billion mega-deal for Botox-maker Allergan is the pharma industry’s latest bet that bigger is better. But the deal is already facing big questions. Big companies often tout cost cuts as they make the case to Wall Street that they’re striking smart deals. Drugmaker Bristol-Meyers Squibb said it would achieve about $2.5 billion in synergies after
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