Top 10 Job-Cutting Companies of 2013
#10. Endo Health SolutionsNumber of job layoffs disclosed: About 700 jobsDetails: Company said June 6 it will eliminate 15% of its workforce worldwide. Company has not stated where jobs will be cut, but suggested at selling, general, and administrative (SG&A) and research job reductions by tying the layoffs to a restructuring whose goals include “streamlining general and administrative expenses, optimizing commercial spend and refocusing R&D onto lower-risk projects and higher-return investments in generics.”Why the company did it: Part of a restructuring that included seeking more acquisitions, selling its HealthTronics urological business1 and branded pharmaceutical early-stage discovery platform, and restructuring its R&D effort. Restructuring was unveiled after company failed to stop a generic version of its Opana ER (oxymorphone HCl) moderate-to-severe pain drug from reaching the market.Size of total workforce: Workforce shrinking from a total 4,629 employees as of February 20, 2013.2
#9. ActavisNumber of job layoffs disclosed: 813 jobsDetails: 350 jobs at Actavis Specialty Brands, the company’s business that more than 40 brand pharmaceutical products, primarily in the U.S. and Canada; all 310 jobs at Lincolnton, NC, manufacturing plant, which the company said it will shut down by mid-2015; 88 jobs in Rockaway, NJ, where Warner Chilcott was formerly headquartered; 65 jobs at manufacturing plant in Corona, CA.Why the company did it: Actavis has cited need to eliminate staffing and operations overlaps following $8.5 billion acquisition of Warner Chilcott, completed October 1. Actavis said it would continue to employ 750 at U.S. Specialty Brands, which had a pre-layoff workforce of 1,100. Lincolnton, NC, production of prescription drugs will be shifted to an Actavis site in Salt Lake City, while over-the-counter drug production will be shifted to contract manufacturers. No explanation for job cuts at Rockaway, NJ, which Actavis retains as “New Jersey Corporate Office”. Job cuts in Corona, CA, part of a plan to reposition the facility into a “Center of Excellence” for manufacturing oral contraceptives, following a 12-year dispute with the FDA over agency allegations of GMP violations stretching back to predecessor Watson Pharmaceuticals.3,4Size of total workforce: Workforce will shrink from a total of approximately 17,700 employees as of December 31, 2012.
#8. Takeda PharmaceuticalNumber of job layoffs disclosed: 1,500 jobsDetails: Takeda executive disclosed plan for workforce reduction of 5% or about 1,500 positions.5Why the company did it: Planned job cut would be part of company’s “Project Summit” restructuring initiative, which followed the launch of a generic competitor to Takeda’s diabetes drug Actos. Company has not stated where jobs would be cut, but has identified “four areas of initiatives” in cost-cutting: sales and marketing, production and supply, R&D, and general and administrative.6 On February 4, company identified among its cost-cutting measures “consolidation or manufacturing and R&D facilities” in Europe.7Size of total workforce: Workforce will shrink from a total 31,057 employees as of September 30, 2013.
#7. Boehringer IngelheimNumber of job layoffs disclosed: 1,571 jobsDetails: All 1,100 jobs at Ben Venue sterile injectables plant in Bedford, OH, which will shut down, the company said October 4; all 240 jobs at API manufacturing plant in Petersburg, VA, announced August 15; 143 sales jobs and 35 administrative jobs in Paris and Reims, France, accounting for 20% of the company’s French subsidiary, disclosed by labor leaders September 9; and 53 jobs at Blanquefort, Gironde, France, following a planned shutdown of the plant operated by subsidiary Labso Fine Chemicals.Why the company did it: Company cited projected operating losses at Ben Venue plant of more than $700 million over five years, on top of $350 million spent correcting manufacturing problems like those that led to a 2011 shutdown. Petersburg, VA, plant shut down after company concluded it needed to shrink manufacturing capabilities, then failed to find a buyer for the plant; company also cited overall production overcapacity in the pharma industry and competition from foreign-produced materials. Shutdown of the Blanquefort plant—the last operated by the company in France—was part of a reorganization of the company’s chemical plants designed to reduce manufacturing overcapacity.8Size of total workforce: Workforce shrunk from 46,228 employees at the end of 2012.
#6. Eli LillyNumber of job layoffs disclosed: Up to 1,624 jobs9Details: An anticipated, roughly 1,245 full-time U.S sales employees eliminated starting June 30, 2013, in U.S. biomedicines division—of which about 560 “will have opportunities to be placed in open roles and, if so placed, will not be terminated”; as well as 379 fixed-duration contract employees, 97 of whom worked under contracts that ended before, but were extended to, June 30.9,10Why the company did it: A response to “changing customer requirements, evolutions in the U.S. health care environment and the upcoming loss in exclusivity” and projected drop in sales as patent protection expires in December on the antidepressant Cymbalta (duloxetine hydrochloride), and in March 2014 on the osteoporosis drug Evista (raloxifene hydrochloride).Size of total workforce: Workforce reduced to 37,925 employees as of the end of 2013.
#5. NovartisNumber of job layoffs disclosed: 1,804 jobsDetails: All 371 jobs at a respiratory R&D site in Horsham, West Sussex, U.K.; a net 325 jobs lost by eliminating 500 R&D positions companywide while adding 175 jobs in Cambridge, MA;11 all 300 jobs over two years at Lincoln, NE, consumer-drugs plant;12 all 300 jobs at Alcon contact lens plant in Mississauga, Canada; 262 Ciba Vision workers in Des Plains, IL; about 120 jobs at Novartis Institutes for BioMedical Research’s Alcon Labs campus in Fort Worth, TX; 72 mostly field-based marketing and sales support positions for diabetes and COPD products in the U.K.; 54 global legal, IT, HR, finance, procurement, and vaccines research positions in Emeryville, CA.Why the company did it: Part of R&D restructuring designed to cut drug development costs; Lincoln plant being repositioned for production of solids and powder, principally for Sentinel, Excedrin, and Theraflu.12 Company is consolidating Ciba Vision and Alcon Laboratories, and concentrating U.S.-based eye disease research in Cambridge, MA. Fort Worth production will be scaled down to solid and powdered drugs only. Emeryville jobs were eliminated as part of a realignment of the facility away from vaccine R&D and more toward diagnostics.Size of total workforce: Workforce reduced from a total 133,000 employees.
#4. Valeant PharmaceuticalsNumber of job layoffs disclosed: 2,700 jobsDetails: 10% to 15% reduction in workforce, or up to 2,700 jobs, following its acquisition of Bausch + Lomb for $8.7 billionWhy the company did it: Part of a restructuring designed to cut costs following the Bausch + Lomb acquisition, in part by consolidating locations. Company has not detailed where it will cut jobs, though Valeant chairman and CEO J. Michael Pearson told employees it will eliminate Bausch + Lomb’s global structure and reduce “significantly” its regional structure to reflect Valeant’s decentralized operating philosophy, which entails a corporate staff of fewer than 100 people.13Size of total workforce: Workforce reduced from the combined 18,000 employees resulting from Bausch + Lomb acquisition.
#3. Teva Pharmaceutical IndustriesNumber of job layoffs disclosed: About 5,000 jobsDetails: 10% reduction in workforce planned by 2017; earlier this year, company committed to carrying out the job cuts as announced October 10 by then-CEO Jeremy Levin, D.Phil., who resigned less than a month later after 17 months in office. Company has not detailed where it will cut jobs and how operations would be affected.Why the company did it: Part of a global restructuring intended to increase organization effectiveness, improve manufacturing efficiency, reduce excess capacity, and divest the company of non-core assets. The restructuring also addresses anticipated challenges, such as the launch of a generic version of the company’s top-selling drug, the multiple sclerosis treatment Copaxone.Size of total workforce: Workforce to shrink from approximately 45,000 employees as of December 31, 2013.
#2. AstraZenecaNumber of job layoffs disclosed: 3,900 jobsDetails: 2,300 SG&A jobs, announced March 21, 2013, and 1,600 R&D, announced three days earlier.Why the company did it: Part of a comeback strategy by CEO Pascal Soriot following years of clinical setbacks involving drug candidates the company hoped would make up for sales revenues to be lost from “patent cliff” expirations through 2014, when the company will lose U.S. patent protection for two of its biggest selling drugs—its proton pump inhibitor Nexium, and its asthma and COPD medicine Symbicort.Size of total workforce: Workforce will shrink from a total of about 51,700 employees (Annual Report and Form 20-F Information 2012). The 2013 layoffs brought to 5,050 the number of jobs—roughly 10% of the current workforce—slated for elimination through 2016 as of December 31, 2013.14
#1. Merck & Co.Number of job layoffs disclosed: 8,500 jobsDetails: 8,500 R&D and commercial operations jobs to be eliminated companywide through 2015, announced October 1. Merck has confirmed or disclosed layoffs as they have occurred: 500 jobs in West Point, PA, an unknown number in Puerto Rico, all 570 employees at a manufacturing plant in Swords, Ireland, and all 152 sales representatives based in Upper Gwynedd, PA who had promoted the antipsychotic drug Saphris (asenapine), effective February 3.15,16Why the company did it: Part of a restructuring designed to help company bolster its pipeline and cut costs, while increasing flexibility through a more agile operating model that will target more spending to what it deems highest-potential growth opportunities.Size of total workforce: The new layoffs, on top of an earlier-announced reduction of 8,500 jobs, will shrink by some 20% the company’s global workforce of 81,000 employees.