A massive manufacturer is now laying off 300 workers at two major facilities, part of a plan to cut a whopping $80 million in costs.
Emergent Biosolutions will lay off 300 employees and close two drug production facilities in Baltimore and Rockville, Maryland, according to a May 1 press release.
The pharmaceutical manufacturer is in the midst of restructuring operations with plans to save up to $80 million.
The company will instead focus on its facilities in Lansing, Michigan, and Winnipeg, Canada, President and CEO Joe Papa said in a Q1 earnings call.
Emergent Biosolutions will continue to prioritize its core products business, including Narcan nasal spray to address the opioid crisis, and medical countermeasures for its patients and customers, including U.S. agencies like the Department of Defense and other allied governments, the release stated.
For its Narcan spray, the pharma company continues “to be well prepared to meet anticipated demand from a supply and manufacturing perspective,” Papa said in the call.
“However, after a careful review by our Board and management team, we need to restructure the way we operate, create a customer-focused, leaner, more flexible team and a streamlined manufacturing footprint that will still allow us to supply all the products needed by our customers,” he said.
As part of the reorganization, a new chief science officer role has been created and will report to the CEO.
The company recently hired Papa to be its president and CEO in February.
The restructuring plan will cost $18 million to $21 million, which is expected to be primarily incurred in H2 of 2024.
In addition to the 300 job cuts, the company will eliminate about 85 job openings, according to the release.
A similar restructuring occurred in August when Emergent laid off approximately 400 employees to cut costs and move away from its contract drug manufacturing business, which ran into several headwinds.
Despite the job cuts, the year is looking up.
In January, the company signed a 5-year, $236 million contract with the DOD to supply its previous anthrax immunization, BioThrax, to various military branches.
The company also reported $300.4 million in Q1 revenues, about $76 million higher than expected.
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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois
Other Economy News Today
A massive clothing retailer is now closing all 540 stores in just six weeks after unexpectedly filing for bankruptcy.
Liquidation sales will be held at rue21 outlets across the US as bosses rush to clear the last remaining stock.
The clothing retailer has entered bankruptcy and bosses have announced plans to close all 540 remaining stores within six weeks, reports The US Sun.
It is the third time in less than 25 years the fashion retailer has entered bankruptcy, per Bloomberg.
Court documents seen by Reuters revealed the company has more than $190 million of debt.
The chain has 540 stores across the US and 4,900 workers are set to be impacted.
Outlets are to slam shut within four to six weeks, according to court papers.
Bosses also announced plans to sell the company’s intellectual property.
The company narrowly avoided going into bankruptcy in October 2022.
Chiefs filed for bankruptcy in 2017 as they rushed to clear around $700 million worth of debt.
Bosses shuttered 400 stores as well and renegotiated leases.
Execs identified the rise of online shopping and changing consumer trends as reasons behind the bankruptcy.
Michele Pascoe, the interim CEO, also alluded to the impacts of competition and inflation.
The company also filed for bankruptcy in 2002.
At its peak, the company had more than 1,000 stores across the US.
The chain has dozens of outlets across several states, including Florida, Georgia, Illinois, North Carolina, Pennsylvania and Texas.
The teen fashion retailer is not the only clothing chain that has entered bankruptcy over the past year.
Last month, Express chiefs filed for bankruptcy, and at least 100 stores are set to close.
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