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Layoffs hit J&J, Bristol Myers Squibb, Bayer (updated)
Kimberly Redmond//October 2, 2024//
Listen to this articleAnother wave of layoffs is set to hit New Jersey’s health sector, with Bayer, Bristol Myers Squibb and Johnson & Johnson all disclosing planned workforce reductions.
Bayer
Following two rounds of layoffs this year at its U.S. headquarters in Whippany, Bayer is planning more job cuts.
In a filing with the New Jersey Department of Labor & Workforce Development, the life sciences company reported it will eliminate 57 positions, effective Dec. 27.
The reductions are part of a larger restructuring effort launched earlier this year by CEO Bill Anderson. The plan aims to boost operational efficiency by streamlining company structures.
As of August, the company eliminated 3,200 positions in the first half of 2024. Bayer had a global headcount of more than 101,000 as of the end of 2023.
Bayer expects companywide layoffs to continue into 2025. As a result of the efforts, it anticipates $541 million in “sustainable” cost savings this year and $2.16 billion in 2026.
Additionally, the company has trimmed executive rosters within its divisions. In January, the German multinational dismissed three longtime executives in its crop science business. Two months later, Bayer reduced its pharma leadership team from 14 members to eight, which also included the promotion of New Jersey-based Sebastian Guth to chief operating officer.
Setting up long-term success
Within New Jersey, Bayer cut 90 jobs this past summer. It is due to lay off 70 employees later this month.
In a statement to NJBIZ, a Bayer spokesperson said, “As Bayer U.S. focuses on what matters most – delivering our mission of ‘Health for all, Hunger for none’ and delivering value for our customers, patients, farmers, our shareholders, and all other important stakeholders – we are adopting a new operating model and with it, a new organizational structure.”
“Our new organizational approach will enable more agility, empower employees to innovate and act, deepen the focus on our mission,” they said. “… Ultimately, our new operating model will accelerate our growth and position Bayer for long-term success.”
“Aligned with this shift – and to help the company address the cost of ongoing litigation around an approved product, glyphosate – we are adjusting our U.S. structure resulting in some positions being eliminated or redesigned, and a few new roles being created,” they said. “We want to express our appreciation for our employees and the important role they have played in our organization.”
Johnson & Johnson
New Brunswick-based health care giant Johnson & Johnson plans to let go 231 employees as of Dec. 27, according to a WARN notice filed with the state.
A J&J spokesperson told NJBIZ, “Johnson & Johnson is tackling the world’s toughest health challenges through science and technology-driven innovation. To continue to meet the needs of patients around the world today and for years to come, we must adapt and evolve our businesses in the midst of a complex and rapidly changing external environment.”
“Guided by Our Credo, we will support employees who are affected by these changes, helping them explore new options within the company and providing access to career services and related support,” they said.
The spokesperson did not comment on which divisions the layoffs would impact.
The NJDOL filing comes as J&J plans to shut down its cardiovascular and metabolic drug unit as part of a restructuring of its pharmaceutical business. The closure will impact mostly employees in sales, marketing and medical affairs, biopharma trade publications Endpoints reported.
Since rebranding its pharmaceutical business from Janssen to Johnson & Johnson Innovative Medicine a year ago, the company narrowed its focus to three therapeutic areas: oncology, immunology and neuroscience products. As a result, J&J wound down its infectious disease and vaccine operations last fall.
Bristol Myers Squibb
Pharma giant Bristol Myers Squibb plans to let go another 79 employees in New Jersey.
Effective between Dec. 12 and May 30, 2025, the layoffs affect employees in Lawrenceville, according to a notice filed with the NJDOL.
The company did not say which workers the reductions will affect or where they will take place. In Lawrenceville, Bristol Myers Squibb has two sites: a corporate headquarters and a 650,000-square-foot facility that houses employees from its commercial and R&D teams.
A media representative from Bristol Myers Squibb said the cuts are tied to a push to reduce company costs by $1.5 billion by the end of 2025. When it announced the plan in April, BMS said it expected to chop around 2,200 roles this year, which would be a 6% headcount reduction.
“As part of this initiative, the company is focusing resources on R&D programs with the potential to deliver the greatest return on investment, prioritizing investing in key growth brands and optimizing operations across the organizations,” the spokesperson also said.
“Unfortunately, there were impacts to some of our employees as a result of these changes noted above. We are grateful for the contributions of our colleagues and a top priority for us is supporting employees throughout the transition process,” they added.
The latest batch of pink slips brings the company’s layoff total in Lawrenceville to 1,134 this year.
Editor’s note: This story was updated on Oct. 2, 2024, to include a statement from Bristol Myers Squibb. On Oct. 3, 2024, a Bayer representative clarified the executive changes at the company, stating some chose to leave the company and others took on new responsibilities within the organization.
