Two pharma giants are cutting staff in New Jersey, with Johnson & Johnson and Bayer making new layoffs between now and the end of December.
Johnson and Johnson plans to cut 231 employees, according to a WARN update in the state. The disclosure comes less than a week after Endpoints News reported that the company was folding its cardiovascular and metabolic division, a move that primarily affected commercial-focused staffers.
A spokesperson for the company said in a statement that it “must adapt and evolve our businesses in the midst of a complex and rapidly changing external environment.” They did not elaborate on which units were included in the latest round of layoffs.
The company has overhauled its pharmaceutical division in the last year and a half, divesting from its infectious disease and vaccines unit at the beginning of 2023 and ultimately closing the unit altogether by mid-year. At the end of last year, the pharma team reintroduced itself with a three-pronged R&D strategy, focused on immunology, oncology and neuroscience.
The cardiovascular and metabolic division made up a small slice of the company’s existing commercial portfolio, led by Bayer-partnered blood thinner Xarelto. But the drug was losing exclusivity this year and was included among the first 10 drugs that Medicare was able to negotiate prices for under the Inflation Reduction Act.
The unit closure does not impact continued development of milvexian, however. A J&J spokesperson said the company remains committed to its development alongside Bristol Myers Squibb and recently re-hired JoAnne Foody to help oversee the program.
Bayer continues restructure
Bayer’s corporate overhaul under new CEO Bill Anderson continues, with 57 layoffs disclosed in New Jersey. A spokesperson said the move was part of Bayer’s larger organizational shift, aimed at enabling “more agility.”
“Ultimately, our new operating model will accelerate our growth and position Bayer for long-term success,” the spokesperson said. The move was also attributed to the costs associated with the ongoing Roundup litigation.
Bayer cut more than 3,200 jobs through the first six months of the year and previously disclosed that it had trimmed its North America pharma management team by 40%.