In the midst of a recent wave of workforce reductions within the biopharma sector, two contract manufacturers have implemented significant layoffs, as revealed in official filings. A California Worker Adjustment and Retraining Notification (WARN) report disclosed that Fujifilm Irvine Scientific has laid off a total of 57 employees across multiple sites in Santa Ana, California. It’s important to note that these layoffs were categorized as “redundant” and were not indicative of employee performance. Instead, they were deemed a necessary measure to optimize the efficient allocation of the company’s resources. In a statement, a spokesperson emphasized that the affected workers were provided with comprehensive severance support.
Meanwhile, across the country, Florida-based Contract Development and Manufacturing Organization (CDMO) Formulated Solutions executed layoffs affecting 66 employees, as per a recent WARN notice. Formulated Solutions has not yet responded to requests for comment from Fierce Pharma regarding these staff reductions.
It’s noteworthy that both Fujifilm Irvine Scientific and Formulated Solutions had been actively promoting their expansion initiatives in the past few years. In 2021, Fujifilm Irvine Scientific concluded the construction of a substantial 250,000-square-foot facility in the Netherlands, designed for the production of materials such as dry powder media, liquid media, and other essential raw materials.
As for Formulated Solutions, the company demonstrated its commitment to growth by investing $44 million in March 2022 to expand a manufacturing facility it had acquired in Tennessee. This strategic acquisition was completed in late 2022, although the financial details remained undisclosed.
These workforce reductions come in the wake of similar actions taken by several other companies within the biopharma industry. Lyndra Therapeutics, for instance, downsized its staff by approximately 23%, attributing the decision to outsource commercial manufacturing and partner on the development and commercialization of “all future products.” Autoinjector specialist AktiVax also faced unforeseen circumstances that led to the complete cessation of its operations, impacting 70 jobs.
Furthermore, CSL Vifor undertook a workforce reduction, shedding 85 positions following a strategic review that prompted changes within the company’s US commercial group. This move came a year after Vifor Pharma had become part of the CSL organization through an $11.7 billion acquisition.
The evolving landscape of the biopharma sector has necessitated these strategic adjustments, as companies strive to align their resources with evolving priorities and market dynamics. The comprehensive support provided to affected employees underscores the commitment to managing these transitions with care and consideration for all stakeholders.