Kimberly Redmond//February 20, 2024//
A fresh round of layoffs is hitting New Jersey’s health sector, with Kenvue and Catalent disclosing workforce reductions.
In a filing with the state Department of Labor & Workforce Development, Johnson & Johnson consumer health spinoff Kenvue said it will eliminate 51 positions at its temporary base in Skillman throughout the first half of the year.
It is not clear what types of roles are affected. A spokesperson for Kenvue did not immediately respond to a request for more details.
In April, the company also expects to cut 84 jobs on the West Coast when it closes a Los Angeles location, according to a layoff notice filed in California.
The company completed its separation from Johnson & Johnson’s core pharmaceutical business in August 2023. Kenvue’s brand portfolio includes Aveeno, Band-Aid, Listerine, Neutrogena and Tylenol.
After signing a long-term lease for 290,000 square feet of space in Summit for its global headquarters, Kenvue expects to begin relocating next year and continuing through 2026. The 46-acre campus will house corporate personnel as well as laboratory space to support research and development.
As of last year, Kenvue had approximately 22,200 employees with 5,400 located in North America.
In a Feb. 14 regulatory filing, Catalent reported trimming an additional 300 positions during the fourth quarter of 2023.
The filing comes about a week after Novo Holdings, the parent company of Danish pharma giant Novo Nordisk, announced plans to buy the Somerset-based contract manufacturer for $16.5 million.
LianBio – which has its U.S. headquarters in Princeton – announced Feb. 13 it will begin to wind down operations immediately and expects to reduce its workforce by about half in the first quarter of 2024. Click here to read more.
The disclosure also followed a December 2023 filing in which Catalent said it reduced its workforce by 1,100 jobs over the past year, mostly in the biologics and corporate divisions. Additionally, the company reported annual revenue losses of $539 million.
Overall, Catalent made $4.26 billion in fiscal year 2023, down from $4.8 billion in the previous 12 months. As of June 2023, the company employed 17,800 employees across 52 facilities.
Novo Holdings’ acquisition of Catalent is expected to close toward the end of 2024.
As a result, the buyer said it will be able to boost production of weight loss drug Wegovy and diabetes shot Ozempic, whose demand has far outpaced supply.
Catalent is already the main supplier of fill-finish work for Wegovy, which involves filling and packaging syringes and injection pens.
In a statement accompanying the merger announcement, Catalent President and CEO Alessandro Maselli said, “Over the past several years, Catalent has built a comprehensive end-to-end offering of services and capabilities to drive innovation in the health care system and improve patient outcomes. This transaction is a testament to our team’s hard work and dedication to this mission, and I am incredibly excited for this next step in our journey.”
He added, “We look forward to benefiting from Novo Holdings’ significant resources to accelerate investment in our business and enhance key offerings as we continue to offer premium development and manufacturing solutions for pharma and biotech customers.”