Large Molecule

Amgen Rejects Split, But Increases Layoffs to 20%

Oct 29, 2014

Wall Street Journal

Amgen CEO says Amgen will not split into two units, but does plan to eliminate another 1,100 jobs on top of the 2,900 previously announced layoffs.

Chief executive Robert Bradway told investors that splitting the company at this time would not add value for shareholders -- a suggestion made earlier this month by billionaire hedge fund manager Daniel Loeb.

Bradway also announced that the company would cut its facilities footprint by 23 percent and reduce staff by 20 percent by the end of next year. Amgen had previously announced a plan to lay off up to 2,900 employees, or up to 15 percent of its global workforce. The additional 1,100 layoffs will bring the total up to 20 percent.

Bradway added that Amgen is preparing to launch four new drugs next year and will expand its program to produce biosimilars.

Read the WSJ article