A multinational drug company has laid off hundreds of workers in 2 branches in their North Carolina facilities.
A spokesman for the company, Steven Danehy, detailed the reasons behind the shake-up, and said that, ultimately, the changes were made “to meet the needs of the business.”
Sites Will Not Close
The company insists that the sites laying off workers are not on the verge of shuttering.
Instead, some manufacturing lines will be shut down as the company shifts to the production of new pharmaceuticals.
Blow for North Carolina Science
Pharmaceutical giant and IP rights lobbyist, Pfizer released the statement detailing the layoffs on Friday, although some operation shutdowns have already begun.
The first workers to be affected have been informed that they will work through to July 31 before their employment is terminated.
Gene Therapy
The sites have both been working on novel gene therapy treatments for genetic disorders.
The Rocky Mount and Sanford facilities have previously released treatments for muscular dystrophy and 2 types of hemophilia.
Recent Failures?
The layoffs may have been related a recent failure in a drug trial for a muscular dystrophy treatment.
Another reason, cited by Danehy, Pfizer’s spokesman, was reduced demand and projected demand for their products.
Bottom Line
These issues are affecting the company’s bottom line, and Pfizer has taken a hit in the markets as a result.
In the past year, Pfizer’s shares have dropped significantly on the stock exchange, as much as 17% as of today.
End of an Era?
These difficulties come following a period of expansion for the company, especially in the state of North Carolina.
In 2023, in North Carolina, they employed 4000 workers and had made investments totaling $1.4 billion.
Positions Lost
Pfizer are cutting 150 of their roles on their Sanford facility, and 60 roles in their Rocky Mount facility.
However, Danehy says the cuts are not performance-related: “This decision is not a reflection on the performance of our colleagues but is in alignment with our site capacity design to meet the needs of the business.”
Past Drug Failure
A June report from WRAL had warned that the failure of a drug for muscular dystrophy could lead to job losses, and recent reports may have borne this out.
The company had seen disappointing results from a trial on Duchenne muscular dystrophy (DMD), one of the most severe forms of muscular dystrophy.
Net Job Loss for North Carolina
Pfizer had previously bought another manufacturing facility in Sanford, which had promised gains in the region.
The facility had received government incentives in exchange for the creation of 200 additional jobs. Pfizer are now cutting 210 jobs.
