MONROE – North Carolina’s booming life science sectors isn’t immune to layoffs as more companies continue to locate or expand operations across the state. Proof is Glenmark Pharmaceuticals Ltd. which lay off 76 workers from a facility in Monroe, according to a required notice the company filed with the North Carolina Department of Commerce earlier this month.
In fact, it’s just the second life science workforce reduction this year following the news in March that BASF would be laying off more than 100 workers in Wake County.
“We are writing to give you notice that there will be a mass layoff at the Glenmark Monroe facility located at 4147 Goldmine Road Monroe, NC, 28110 on June 2 2022,” the letter, which was obtained by WRAL TechWire, reads. “This mass layoff is expected to be permanent.”
So far in 2022 layoffs have been few across North Carolina’s economy despite rising inflation and other issues, according to reports made to the N.C. Department of Commerce: Some 18 actions involving just over 1,500 workers.
Seventy employees will begin to be separated from employment on August 1, according to the notice. And six additional employees will be separated on or before October 1, the notice states.
No rationale for the decision was provided in the letter, dated June 2, 2022.
But the company did issue a voluntary recall for three lots of products characterized by the U.S. Food and Drug Administration as drugs, in late April and early May, according to a weekly enforcement report published by the FDA for the week ending May 4, 2022.
The reason for the recall is stated as a deviation from Current Good Manufacturing Practice (CGMP) regulations, which the FDA states on its website are in place to “make sure that a product is safe for use, and that it has the ingredients and strength it claims to have.”
And the company reported a decrease in revenue on a year-over-year basis for the U.S. operations, according to a press statement published on Bloomberg in May 2022. The report notes “US Business recorded de-growth of (7.9%) YoY” and were for “financial results for the fourth
quarter ended March 31, 2022.”
The company did not immediately respond to a request for comment.
Reporting from Jim Shamp, at the time the director of public relations for the North Carolina Biotechnology Center published by WRAL TechWire in August 2014, noted that the company’s decision to purchase a 15-acre site and invest some $18 million would be to build the India-based pharmaceutical company’s first North American manufacturing facility.
At the time of the announcement, the company anticipated it would hire 41 workers, once open.
“Our plan to set up a new state-of-the-art manufacturing facility in the U.S. underlines the fast-paced growth the company has witnessed in a short span of eight years in the U.S. market, and our long-term commitment to the country,” said Glenn Saldanha, chairman and managing director, in August 2014. “The U.S. is a key strategic market for Glenmark and it is important for us to have a manufacturing base here to serve our growing business in the country.”
But as it turned out, the investment in the site grew to $100 million and the employee base grew as well, as noted by a company statement in October 2018.
“Our investment in Monroe is a key priority for Glenmark, and contributing to the surrounding community through high-quality job creation and educational investments is a critical success factor as we expand our global manufacturing operations into the U.S.,” said Robert Matsuk, President, North America & Global API at Glenmark Pharmaceuticals, in the statement in October 2018. “We have a commitment to long-term growth and expansion in North Carolina and are thankful for the mutual support from our community partners in helping realize those goals.”