Elanco Animal Health Inc. /zigman2/quotes/203710302/composite ELAN -2.29% said Tuesday it will cut about 380 jobs globally as part of a restructuring aimed at simplifying the animal health company's organizational structure and to focus investments in priority areas. The job cuts, which represents about 3.7% of the workforce as of the end of 2020, will include reducing senior management by about 20%. As part of the senior management reduction, Chief Marketing Officer Racquel Harris Mason, President Elanco Europe Dirk Ehle and President U.S. Pet Health Joyce Lee. The company expects to record a fourth-quarter charge of between $86 million to $94 million for severance costs, which is expected to reduce net earnings per share by 13 cents to 15 cents. The company expects compensation and benefits savings of $70 million a year once the job cuts are fully implemented. "While actions that impact our team are always difficult, it is imperative that we simplify our organization and focus on delivering customer value to meet our commitments to improve our profitability, even in the midst of increasing inflationary and supply chain costs," said Chief Financial Officer Todd Young. The stock, which was still inactive in premarket trading, has lost 9.7% over the past three months while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.56% has gained 2.8%.