Japan's Eisai cuts 25% of U.S. commercial, services units
Japan's Eisai has decided to follow the cost-cutting trend of many of its multinational counterparts and lay off a quarter of its U.S. commercial and regional corporate services units, which currently employ about 850 people. The unit said the 200-plus staff reductions would not affect manufacturing or R&D units.
Characterizing the move as a "realignment" to "redeploy our resources," unit Chairman and CEO Yuji Matsue said the layoffs were necessary because of a changing business environment. The cuts are to be made by May 1, but the company said in a news release it had no plans to close any of its "main offices or facilities" in the United States, where it employs about 1,800 altogether.
In addition to R&D, Eisai U.S. operations include manufacturing and marketing. It lists nearly three dozen executives for its U.S. operations. The 200-plus layoffs are fewer than the average among 7 companies that carried out large layoffs last year, cutting 10,691 jobs.
Several pharmaceutical giants have eliminated hundreds of jobs each in recent years, Pfizer ($PFE) notably shutting down one entire U.K. operation with 2,400 employees.
FiercePharma recently reported that last year's layoffs were only a third of the 30,000-a-year average of the previous three years. Many staff cuts follow larger mergers, but Eisai has not been among them.
- here's the Eisai release
- read FiercePharma's take
- and FierceBiotech's take
Special Report: The largest biopharma layoffs of 2014
John Carroll contributed to this report.
Summary
Eisai has decided to follow the cost-cutting trend of many of its multinational counterparts and fire a quarter of the 1,800 employees of its U.S. unit, Eisai, Inc. The unit said the staff reductions would be made across its five U.S. facilities, primarily involved in research and development.