Takeda Pharmaceutical is preparing for a new radical restructuring aimed at streamlining operations to fund future drug launches and late-stage pipeline development.
The initiative, announced Wednesday, aims to generate total annual savings for Takeda of more than 200 billion yen ($1.26 billion) by fiscal year 2028.
In a March 25 announcement, the exact impact on Takeda employees was not quantified, but the company said efficiency gains would be driven by streamlining corporate functions, “bringing executives and teams closer to patients and customers,” and simplifying processes with advanced technology.
Takeda is touting the initiative as the next step in its corporate transformation under a new business structure announced in January and scheduled to take effect in April, when the Japanese drugmaker begins its 2026 fiscal year. This move can also be seen as a continuation of the organizational reforms announced in May 2024 with the aim of increasing Takeda Pharmaceutical’s operating profit margin to over 30%.
This transformation comes at a high cost. Takeda expects the new initiatives to cost it 150 billion yen ($940 million) in restructuring costs during fiscal 2026, with additional but lower separation costs over the next two years.
Takeda has recorded a restructuring charge of 128 billion yen ($800 million) in the fiscal year ending March 2025 due to the first overhaul announced in 2024. During this period, the company’s full-time equivalent workforce was reduced by more than 1,800, or 3.7%, according to its annual report.
By simplifying its corporate structure, Takeda intends to reallocate resources to its research and development pipeline, future launch plans, and strategic technology investments.
“Today, Takeda is poised to make a significant impact on patients’ lives as we prepare to launch multiple new medicines and continue to deliver on the promise of our pipeline,” Julie Kim, Takeda’s next CEO, who will officially take over in June, said in a statement on March 25. “The deliberate steps we are taking will strengthen our ability to strategically prioritize resources and execute quickly while positioning us for the next era of long-term growth and success.”
Takeda’s potential future drugs include the narcolepsy drug obepolexton. An injectable drug called lasfertide designed to treat a rare blood disorder called polycythemia vera. and zasocitinib, a TYK2 rival to Bristol-Myers Squibb’s Sotiktu.
Takeda Pharmaceutical went into rebuilding mode in 2024 in response to a sharp decline in profits after the patent expiration for its blockbuster drug Vyvanse, which treats attention-deficit/hyperactivity disorder. Simplifying the organization, reducing tiers, and fine-tuning the operating model were key goals of the plan.
In January, the company outlined plans to revamp its executive team and business structure. The company is creating an international business unit to manage all markets outside the United States and combining previously separate commercial teams. It also forms the Strategy and Portfolio Development function, which handles all aspects of portfolio strategy and business development.
Takeda isn’t the only company pursuing a slimmer model. Pharmaceutical giants such as Novartis, Bayer, Pfizer, Bristol-Myers Squibb, and Merck & Company have all embarked on similar cost-cutting and restructuring measures. A recent Fierce Pharma analysis found that major pharmaceutical companies, each with 2025 sales of more than $20 billion, collectively cut more than 22,000 employees last year.
Takeda Pharmaceutical is scheduled to announce its full-year 2025 financial results on May 13th.
