Takeda Pharmaceuticals, Inc. planned to lay off 641 employees in Massachusetts. According to a state filing, this includes a total of 495 in Cambridge and 146 in Lexington. Layoffs will start in July and continue until March 2025. In this article, we learn more about Takeda Layoffs.
Takeda stated that it is restructuring for about $900 million. The company plans to close its R&D unit in San Diego, which now employs over 300 workers. This Japanese pharmaceutical sector employs 36,893 people, with more than 18,000 based in the United States.
Takeda, the life sciences giant, has headquarters in Japan. However, its operations in the United States are situated in Massachusetts. Takeda is the state’s top employer in the life sciences sector.
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Takeda closes its R&D operations in Austria
Takeda failed in an attempt to sell an Austrian manufacturing and research site. So, it plans to end many of the facility’s operations. A business spokesperson confirmed that Takeda is shutting down production and R&D operations at its adeno-associated virus (AAV) gene therapy unit in Orth, Austria. About 200 staff members would lose their jobs due to the move.
According to the spokesperson, Takeda wanted to sell the site to help maintain its focus on AAV gene therapy. Despite an “accurate and long effort,” Takeda could not find a buyer.
In this case, the drugmaker informed staff of the layoffs and operational shutdown. She stated that the company is committed to helping affected employees in many ways.
In addition, the change will not impact Takeda’s Orth quality control lab. It includes critical support activities.
In line with the decision, Takeda stated last year that an unknown number of staff would “transition out” of the company. Layoffs had begun by May 2023, and Takeda had disclosed this in WARN warnings. It stated that as many as 186 employees would be let go from the company’s several Massachusetts locations.
Takeda Layoffs 2024
Takeda’s newly announced $900 million restructuring campaign has already created waves. Now, the company is outlining plans for hundreds of layoffs at two Massachusetts sites.
Takeda intends to lay off 495 employees at its US headquarters in Cambridge, Massachusetts, and 146 at its Lexington facility in the same state. This is according to a Worker Adjustment and Retraining Notification (WARN) Act notice.
A spokesperson for the business stated in an email that,
“The company is committed to helping employees in affected roles during this time in various ways. This includes support in finding other potential jobs within Takeda. It’s because we create new roles, transition resources, and consultation services.”
According to the WARN notice, employee cuts at both sites will begin in early July and last until March 2025. Takeda’s current financial year will finish in March 2025. The company expects its total earnings to reach 225 billion Japanese yen ($1.4 billion).
The multiyear 140 billion yen ($899 million) restructuring campaign aims to raise the company’s core operating profit margin yearly to the low-to-mid 30% range. It has a focus on
- organizational agility,
- procurement savings, and
- technology efficiency.
Takeda stated that attaining “organizational simplicity” will “cut down on layers” and “refine operating models.” This is according to the company’s recent full-year earnings report.
The program would demand “difficult choices. Some employees will be affected as a result,” according to the spokesperson.
“This is not a staff-reduction initiative,” the firm official clarified. “We are striving hard to limit the extent of impact for our employees as much as possible. We will grow to meet the company’s needs moving forward. This will include adding new roles with particular skills that best meet these needs.”
The goal of the company
The mission aims to address declining revenues as generics reduce sales of the bestselling ADHD medication Vyvanse. The drugmaker’s income from the medicine declined 14% in the previous fiscal year to 423 trillion yen ($2.7 billion).
So far, Takeda has canceled seven pipeline products. It also accepted that it would close a San Diego research location as part of the restructure. The San Diego center employed about 340 full-time staff, but some positions may be relocated to other research facilities.
As mentioned, Takeda is the largest life sciences employer in Massachusetts. According to a spokesperson, despite the layoffs, the drug company is “confident” that it will retain the title, with Cambridge being Takeda’s global hub.
The business had already announced a separate round of layoffs this year. It is about to lay off 200 employees when it shuts down production and R&D operations at its gene therapy unit in Orth, Austria. After AAV gene therapy discovery and preclinical activities were completed, that action was part of a separate plan to dispose of the site.
Conclusion
Takeda is reducing its Massachusetts workforce just a few weeks after revealing plans to launch a “significant, multiyear efficiency program.” Takeda revealed the changes earlier this month when it reported its financial results for 2023.
CEO Christophe Weber stated that Takeda faces generic competition shortly. So, he predicts the business will return to “sustainable” sales and profit growth in fiscal year 2025.
The business focuses on three new medicine approvals from the United States Food and Drug Administration for fiscal year 2023. Also, up to six products are in late-stage development this year.
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