Emergent to cut over 130 positions to kick off new year
The Maryland-based manufacturer Emergent BioSolutions is laying off employees and two executives are departing.
In an announcement on Monday, Emergent said that it will lay off 132 employees, as part of its plan to combine its research, product development, and clinical teams into a single “Science & Development” team. The layoffs amount to around 5% of Emergent’s current workforce. According to its annual report to the SEC for Fiscal Year 2021, the manufacturer had 2,416 employees in total. In a statement, Emergent CEO Robert Kramer said that the company will provide resources to help all the employees affected by the layoffs, but no details were provided.
In an email to Endpoints News, an Emergent spokesperson said that the eliminations will occur over the next 60 days, and most of the roles being cut are at sites in California and Maryland.
Emergent’s new Science and Development team will focus on programs that will support its “life cycle plans” for its licensed products along with growing the products and services business in the long run. Emergent said the move will save it $60 million once fully implemented, but the current costs associated with the cuts are estimated at $9 to $11 million and are expected to be incurred in the first quarter of the year.
Two executives are also leaving. Atul Saran, the EVP and chief strategy and development officer, and Katy Strei, the chief human resources officer will be leaving on March 17, with Michelle Pepin being promoted to the position effective immediately.
Emergent noted that it will continue its focus on medical countermeasures, Narcan, and its general contract manufacturing business. Emergent’s stock price $EBS has gone down around 3.5% since opening on Monday.
“Emergent is undertaking these actions to strengthen our business, reduce costs and return to sustainable, long-term growth,” Kramer said in a statement.
Emergent recently signed a deal to supply the US Department of Defense with reactive skin decontamination lotion, with the contract worth $379.6 million.
The manufacturer is also not alone in conducting layoffs this early in the year. Last week, Elevation Oncology’s CEO and founder announced he was stepping down immediately as the company abandoned its former lead candidate and laid off 30% of its workforce. The biotechs Century Therapeutics and Aeglea BioTherapeutics axed 25% and 15% of their workforces respectively to start 2023 as well.