Given the severe impact of the global economy during the COVID-19 pandemic, it is a little surprising that there have been no further downsizing in the biopharmaceutical industry. As biopharmaceutical companies focus on efficiency and site closure, jobs are lost. Here is a look.
J&J closes South San Francisco location
Johnson & Johnson filed a WARN notice to California regulators announcing the closure of the South San Francisco facility. As part of the shutdown, 73 jobs will be relocated from the state, particularly to Titusville, New Jersey, if they agree to move. Otherwise, they will be fired.
The site is home to several divisions with the largest downsizing at Actelion Pharmaceuticals US, which J&J acquired in 2017. There are 36 marketing, administrative, and medical and scientific affairs positions. Other affected units are J&J Health Care Systems with five; Janssen Scientific Affairs, at 11; Janssen Pharmaceuticals at eight; J&J International with six; J&J Services with three; Janssen Global Services with two; and Johnson & Johnson with two.
“We are moving our US pulmonary hypertension office from San Francisco, California to Titusville, New Jersey to integrate our pulmonary hypertension business with the rest of our Janssen therapies, to foster closer collaboration to drive growth and innovation and to expand the career opportunities for our team members, ”stated the company. “No jobs will be lost as part of this transition. All employees whose roles are in scope will have the option to move and Janssen will provide assistance and cover the relocation costs for employees who choose to move to the East Coast. “
Roche Knocking Down Facility in Ireland
When it couldn’t find a buyer for its Clarecastle, Ireland manufacturing facility, Roche decided dismantle it. In addition to removing the 10 buildings and infrastructure on the 88 hectare site, the company is removing around 40,000 tons of waste identified at the site. This then requires more than 90,000 tons of backfilling.
Roche plans to complete the project by the end of 2024 and then follow it for three years to assess the “effectiveness of the restructuring process”.
The closure is one of four the company announced in 2015. Roche found buyers for factories in Italy, Spain and North Carolina, but could not find buyers for Ireland. The site employed 130 chemists, engineers, production and laboratory technicians, accountants, IT specialists and craftsmen.
Gilead cuts 178 jobs in California
On March 3rd Gilead Sciences submitted a WARNING to the state of California that effective May 30th, 178 jobs will be cut. Half of the 89 positions are expected to be relocated to the company’s new service center in Research Triangle Park, North Carolina. The new North Carolina facility will employ 275 people when construction is completed in two years. Gilead reiterated that it is committed to maintaining its headquarters in Foster City, California. The company employs more than 13,000 people worldwide, more than half of them in California.
GlaxoSmithKline cuts 300 jobs
Mid-February based in Great Britain GlaxoSmithKline announced plans to cease production of antibiotics in the UK following a $ 500 million product sale to Novartis’ Sandoz division. GSK’s delivery commitment for Sandoz runs until 2025 but is preparing to close one location and downsize another. To cut 300 jobs.
Under the agreement, Dandoz will pay GSK 350 million to complete additional milestones of up to $ 150 million. The agreement includes worldwide rights to three cephalosporin antibiotics, Zinnat, Zinacef and Fortum, in more than 100 countries. Some of the rights are excluded in the US, Australia and Germany that were previously sold by GSK. GSK also maintains the rights of some brands in India, Pakistan, Egypt, Japan and China. At the time, GSK did not announce any specific downsizing, but stated that all 170 roles in the Zinnatt supply chain would be affected.
Amgen cuts mostly US sales jobs
Early february Amgen announced They eliminated hundreds of US jobs, most of them in the sales department. The company said the layoffs will allow Amgen to invest in other opportunities, including new product launches and research and development. The announcement was part of the financial statements for the fourth quarter and full year 2020, in which Amgen named sales growth of 9% of 25.4 billion US dollars. Profits were largely driven by volume growth but were offset by lower net selling prices and the pandemic.