AstraZeneca will slash 1,200 jobs from its north Wilmington site as part of a plan to realign its research and development locations and cut costs.
The company summed up the changes as follows in a release issued on Monday morning.
“With the exit of the Global Medicines Development group and the relocation of global marketing and U.S. specialty care commercial roles, about 1,200 roles will leave Wilmington. There will be a net increase of approximately 300 roles in Gaithersburg. The changes announced today will lead to an estimated overall reduction of about 650 positions in the US; while around 170 will relocate to other AstraZeneca sites in the US or overseas. Wilmington will remain the North America commercial headquarters, with a population of about 2,000 at the AstraZeneca site.” Click here for the full U.S. release.
The changes are expected to take place over the next couple of years. In terms of total employment, the cutbacks match the impact of the closing of the Chrysler plant in 2008. That was followed by the shuttering of the GM Boxwood plant, several months later.
Gov. Jack Markell issued the following: “We know we have a great workforce in Delaware and the AstraZeneca employees affected by this decision are part of our talented scientific pool. I am greatly disappointed by the job losses at the company and for the employees whose lives will be painfully and directly affected. The company says the job re-locations and eliminations will happen gradually over time with various projects, and we will offer state employment transition support services to employees who need assistance as that happens.”
Catherine Rossi, spokesperson for Gov. Jack Markell said state officials were informed of the decision Monday morning, shortly before the public announcement.
Rossi said Delaware remains home to the company’s North American headquarters and will be the new reporting base for global innovations. The state will offer transition support to employees who feel the need for assistance when job cuts are made.
Rossi added that AstraZeneca ” fulfilled all its obligations under its Delaware Strategic Fund award by the end of 2005. The company needed to have 4,000 employees and had 5,388 at the end of that year. The state also made extensive highway improvements in the area, at least partly due to the transfer of jobs at the time from Chesterbrook, Pa. to northern Delaware.
Since 2005, AstraZeneca has whittled away at the headcount in Wilmington, closing a laboratory and making other cost-cutting moves.
Gaithersburg, Md., the site of MedImmune’s headquarters and the primary location for AstraZeneca’s biologics activities, will also become home to much of the company’s U.S.-based Global Medicines Development activities for small and large molecules and will accommodate some global marketing and US specialty care commercial functions, according to the company. Gaithersburg is in the Washington, D.C. metro area, which is known for a high cost of living.
Gatihersburg and two other sites will be supported by other existing AstraZeneca facilities around the world, including Boston. Boston will continue to be a center for research and development, with a primary focus on small molecules.
Pascal Soriot, Chief Executive Officer, AstraZeneca said: “The changes we are proposing represent an exciting and important opportunity to put science at the heart of everything we do because our long-term success depends on improving R&D productivity and achieving scientific leadership.
“I recognize that our plans will have a significant impact on many of our people and our stakeholders at the affected sites. We are fully committed to treating all our employees with respect and fairness as we navigate this important period of change,” Soriot added.
One site in the United Kingdom will close, with jobs moving to other locations.
The changes, which are expected to further hinder an already sluggish economy recovery in Delaware and deals a blow in efforts to build the life science community in the state. The state has seen success of late from the growth of Incyte, Inc., a drug research company that has moved one of its pharmaceuticals to the marketplace.
AstraZeneca has been struggling with patent expirations for its blockbuster drugs and a lack of new drugs in development pipeline.
Its former CEO, David Brennan left the company after struggling with the drug pipeline issue and not seeing bigger returns from the $15 billion purchase of Medimmune. Brennan had headed North American operations from north Wilmington before taking the top post in AstraZeneca.
