Amgen, one of the world’s largest biotechnology companies, is laying off 450 employees in its second round of job cuts of 2023. The company also laid off 300 in January.
The move comes after the company reported revenues of $26.3 billion in 2022 and a net income of more than $6.55 billion, according to the company’s end-of-year earnings report. Amgen has a workforce of more than 25,000 in 2022. The company noted that economic factors influenced the layoff decisions this year.
“We made these changes to realign our expense base in the face of intensifying pressure on drug prices and high levels of inflation so that we can continue to deliver value for our patients, staff and shareholders,” Amgen said in a statement.
The company, which is based in California, is the latest in the biotech field to signal headwinds. Akorn Pharmaceuticals, which developed, manufactured and marketed specialty pharmaceuticals, including prescription, consumer health and animal health products, abruptly shut down earlier this month and laid off all its employees.
The news also comes a few months after Amgen announced its plan to acquire Horizon Therapeutics for a whopping $27.8 billion. The deal would bring together Amgen––which is focused on cardiovascular disease, oncology, bone health, neuroscience, nephrology and inflammation––and Horizon, which develops medicines for rare, autoimmune and severe inflammatory diseases. It was one of the biggest healthcare deals announced in 2022.
Just before the March layoffs were reported in the press, Reuters reported that Amgen was facing a proposed class action lawsuit for allegedly hiding a $10.7 billion tax bill that artificially inflated its stock.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."