Job Reductions Update: Kaléo to Cut 58 Positions, Ongoing Layoffs at Stryker
The biopharma sector faced significant challenges in 2023, as numerous firms opted to reduce their workforce and alter their operational structures to survive the economic downturn. However, positive shifts have been seen recently, particularly in the forms of increased mergers and acquisitions that were observed towards the end of 2023, and which are projected to continue into 2024.
BioSpace remains committed to providing updates regarding job cuts and restructuring strategies throughout 2024. We will keep you informed about which organizations are implementing workforce reductions and tightening operations in this evolving landscape.
October 7
Kaléo, a firm committed to treating serious medical conditions, will be eliminating around 58 jobs nationally. This decision comes from a Worker Adjustment and Retraining Notification Act (WARN) notice submitted in Ohio. While no specific reason for the layoffs was mentioned, the notice indicated that all impacted personnel are based out of Richmond, Virginia. The final separation date is set for November 30. Layoffs will include five remote roles located in Ohio and eight positions within Richmond as detailed in a corresponding Virginia WARN notice.
These layoffs were announced shortly before Kaléo revealed a new structure for its commercial team concerning Auvi-Q, its epinephrine auto-injector. The company aims to enhance support for healthcare providers by increasing the number of representatives and expanding its pharmacy support team.
October 7
Stryker, a medical device company headquartered in Michigan, will be laying off six employees from its Lakeland, Florida facility, effective November 30. This reduction is part of an ongoing initiative, originally started in 2021, that is expected to ultimately result in the elimination of approximately 500 jobs at the site and lead to closure by December 31, 2026. So far, around 220 positions have already been cut.
At the time of the disclosure, Stryker reported a global workforce of around 52,000 employees, which includes 27,000 in the U.S. The layoffs coincided with Stryker’s announcement regarding the completion of its acquisition of Vertos Medical Inc., a company focused on interventional pain management solutions.
October 4
Relay Therapeutics has announced it will be laying off about 10% of its workforce, impacting approximately 30 employees, as confirmed by a spokesperson in a statement to BioSpace. While the exact timing of the layoffs was not stated, this step is part of the company’s efforts to streamline research operations. The focus is on enhancing efficiency through optimizing tools and teams.
Additionally, previous layoffs earlier in July had already impacted less than 5% of the team, which numbered around 300 at that time. A reported goal of this current reorganization is to save the firm approximately million annually.
October 3
Johnson & Johnson announced plans to cut 231 positions at its headquarters in New Brunswick, New Jersey, effective December 27, as detailed by a Worker Adjustment and Retraining Notification Act (WARN) notice. While no official reason is provided for the layoffs, a statement from a J&J spokesperson indicated that adaptation and evolution are necessary in today’s complex and rapidly changing environment in order to better meet patient needs.
October 3
Bayer also disclosed layoffs, including 57 positions at its headquarters in Whippany, New Jersey, with a similar effective date of December 27. The reasons for the job cuts were not officially announced, but according to a Bayer representative, the company is shifting to a new operating model to enhance agility and encourage innovation among employees.
Earlier in May, Bayer had undertaken a substantial workforce reduction, eliminating 1,500 jobs primarily in management positions. These actions reflect the ongoing restructuring efforts within the company.
This string of layoffs highlights the ongoing turbulence within the biopharma industry as companies navigate the complexities of the market while striving to sustain operations and focus on future growth potentials.