Pfizer Inc. (NYSE:PFE) has undertaken several rounds of job cuts in the past several weeks in an effort to reduce costs. The Pfizer layoffs in 2018 were laid out in three WARN notices, the most recent Pfizer WARN notice stating that a Pfizer plant closing will leave 13 people without work when it takes effect on March 30. The other two WARN notices, taking place in mid-February and early March, will cut three and five people, respectively. All three staff reductions were made in Clinton County. These New York layoffs represent one of the first rounds of pharma layoffs in 2018, although they are certainly not the only cuts being made in the industry this year.
Pfizer, one of the world’s largest pharmaceutical companies, is headquartered in New York City, with its research headquarters in Connecticut. The company was set to merge with Allergan plc (NYSE:AGN) in 2016, but the deal was nixed by the U.S. government. Both massive pharmaceutical companies have both since instituted layoffs both in 2017 and in 2018. As such, these Pfizer job cuts should come as no surprise.
While these Pfizer layoffs at 2018’s start will impact the Clinton County plant and workers stationed there, the cuts are relatively minimal compared to other large pharmaceutical companies looking to implement job reductions.
More Pharma Layoffs to Take Place in 2018
Pfizer layoffs in 2018 are hardly the only cuts being made in the industry this year.
In fact, pharma layoffs in 2018 are already set to number in the thousands. Allergan is one of the biggest movers in that regard. Allergan’s layoffs in 2018 alone are set to account for over 1,000 job losses in the industry.
The company has been looking to make cuts for a couple months now, with a November earnings release and conference call being when the company officially announced that it was looking to reduce costs via a restructuring program. The moves are being made in an effort to hit the non-GAAP performance net income per share levels that were outlined in the call.
Below is section of the SEC Form 8-K that pertains to the cuts:
“In response to the anticipated loss of exclusivity of several key revenue-generating products in 2018, the Company is optimizing and restructuring its operations in early 2018. As part of an internal restructuring plan, the Company intends to eliminate over 1,000 currently filled positions, impacting employees in commercial and other functions,” reads the U.S. Securities and Exchange Commission Form 8-K that pertains to the cuts. “Commercial reductions will primarily focus on products and categories subject to loss of exclusivity. In addition, the Company will eliminate approximately 400 open positions”
According to the statement, Pfizer expects restructuring costs of approximately $125.0 million, most of which will be used to pay severance. Overall operating expense savings from the layoffs and restructuring are expected to range from $300 to $400 million.
Bristol-Myers Squibb Co (NYSE:BMY), also headquartered in New York City, is also cutting jobs. Another 29 workers will be affected by the Bristol-Myers Squibb layoffs in 2018 as the company shutters a Connecticut plant. Those cuts will come sometime before the end of the year as the company finishes closing down the plant in question.
“Listing of WARN Notices 2017,” Connecticut Labor Department, 2018.
“Allergan PLC SEC Form 8-K,” SEC, January 3, 2018.
“Warn Details,” New York Department of Labor, January 1, 2018.
“Warn Details,” New York Department of Labor, December 5, 2017.
“Warn Details,” New York Department of Labor, November 20, 2017.