As the major cost-cutting initiative at Bristol Myers Squibb rolls on, the company has launched another round of layoffs in its home state of New Jersey.
BMS’ latest workforce reduction affects 67 employees in Lawrence Township, according to a New Jersey Worker Adjustment and Retraining Notification (WARN) notice (PDF). The notice lists several effective dates for the cuts stretching into December.
The cuts are part of BMS’ plan to slash $1.5 billion in costs by the end of 2025. Under the major restructuring, unveiled last year, the company has been looking to improve its efficiency by reducing clinical trial expenses, rationalizing its operating footprint and reducing its head count.
“As we have communicated over the last year, we are focused on strengthening the company’s long-term growth profile,” a BMS spokesperson said in response to Fierce Pharma’s inquiry about the latest layoffs. “We are optimizing operations across the company while prioritizing investments in innovative and transformational medicines where we can deliver the highest value for patients and shareholders.”
BMS is expected to dismiss more than 2,000 employees as part of the overhaul. Last year alone, BMS filed six WARN notices affecting a total of 1,329 staffers in Lawrenceville, which hosts the company's sprawling corporate headquarters and a Princeton Pike facility for commercial and late-stage development functions.
The New Jersey pharma will report full-year 2024 financial results Thursday, Feb. 6., when it’s expected to provide guidance for 2025. Investors will also be watching for early launch indicators for the schizophrenia drug Cobenfy, which bears blockbuster potential and represents a key piece in BMS’ blueprint to navigate a period of costly patent losses.
Meanwhile, BMS isn’t the only firm plotting layoffs in New Jersey. Kyowa Kirin is letting go of 52 employees in Princeton, according to the state's WARN report. The Japanese pharma consolidated its New Jersey operations into a new North America headquarters in Princeton in 2023. At that time, the company said the new space would host more than 300 employees across development, commercial and corporate functions.
Kyowa Kirin has also been in reorganization mode lately. Last summer, the company announced a “significant reduction” in its small-molecule drug discovery and research activities so that it could focus on antibody technologies and hematopoietic stem cell gene therapy tech. As a result, Kyowa offered a voluntary early retirement program to affected employees.
The Japanese pharma also reworked its Asia-Pacific footprint, offloading several assets, including its entire operation in the Chinese mainland.
Then, in October, Kyowa said it would elevate its president, Masashi Miyamoto, to chairman and CEO, while its current chief international business officer, Abdul, Mullick, Ph.D., would take the newly created title of president and chief operating officer.
“These changes reflect a new dual CEO-COO leadership structure to help support the business’ continued growth,” Kyowa said at the time.
These moves followed a revamp of Kyowa’s R&D division in which the company split its research and development functions into separate departments.