Pharmaceutical giant AstraZeneca announced a major cut to its Delaware operations this morning.
The company says it is 1,200 jobs will be eliminated at its Wilmington headquarters. 650 of the cuts will be the result of layoffs while an additional 550 will be transferred to other locations. Many of the transfers involve relocating the company's Global Medicines Group to Gaithersburg, MD.
AstraZenca says Wilmington will remain the company's North American headquarters with about 2,000 employees there.
“I recognize that our plans will have a significant impact on many of our people and our stakeholders at the affected sites. We are fully committed to treating all our employees with respect and fairness as we navigate this important period of change,” said AstraZeneca CEO Pascal Soriot in a statement.
Governor Jack Markell says he has discussed the cuts with AstraZeneca leadership.
“I am greatly disappointed by the job losses at the company and for the employees whose lives will be painfully and directly affected. The company says the job re-locations and eliminations will happen gradually over time with various projects, and we will offer state employment transition support services to employees who need assistance as that happens," said Markell in a statement. "AstraZeneca leadership has shared its goals of restoring company growth and co-locating work teams in order to be strategically successfully, but Delaware remains home to AstraZeneca’s North American headquarters and will be a reporting base for its global innovations group.”
Senator Chris Coons (D-Delaware) said he has also spoken to AstraZeneca regarding its decision.
“This is a disappointing day for Delaware, and devastating news for the 1,200 AstraZeneca employees and their families affected by this decision. Delawareans will stand with our neighbors during this challenging time, and I am committed to doing whatever I can to help them through it," said Sen. Coons in a statement. "I have spoken with AstraZeneca’s leadership and will continue to advocate on behalf of those impacted by this decision."
AstraZeneca spokesman Tony Jewell says the cuts in Delaware may also shrink the size of company’s Wilmington campus.
"The south campus, those building south of Powder Mill Road here in Wilmington [are] to be split off and that could very well include having the land and the buildings sold," said Jewell. "Additionally, the Rollins building [along 202] has been for sale and and will no longer be a part of the campus."
AstraZeneca brought its North American headquarters to the First State in 1999. There were as many as 5,000 employees there in 2005, a number that fell to about 3,500 jobs by 2011.
Senator Tom Carper (D-Delaware) was Delaware's governor when the state courted AstraZeneca to bring its North American headquarters to Delaware.
"For years, AstraZeneca has been that good corporate citizen in Delaware, which is what makes this decision all the more painful for me and especially for those 650 men and women who will lose their jobs at the company and the additional 550 employees whose jobs will leave Delaware for other locations," said Carper in a statement. "One one hand, we are grateful that another option – the complete closure of operations in Delaware – was averted."
The company expects to complete layoffs and transfers by the beginning of 2016.