NEW YORK CITY-Pfizer said Tuesday it will close eight manufacturing plants in the US and Europe by the end of 2015, while reducing operations at six others. The cuts will mean laying off 6,000 workers globally over the next several years.
Nat Ricciardi, Pfizer’s global manufacturing president, says in a statement that the pharmaceutical giant “must continue to adjust to the fast-changing and extremely competitive environment in which we operate. That means realigning our network and reducing our manufacturing capacity so that we can position Pfizer for the next phase of growth across biopharmaceuticals and our diversified business portfolio.”
Locally, Pfizer will shut down manufacturing at its Pearl River, NY and Rouses Point, NY facilities; the Pearl River site will continue to house R&D operations. Also slated for closure are plants in Richmond, VA, which also will support ongoing R&D activity; Caguas and Carolina in Puerto Rico; and Dublin, Loughbeg and Shanbally, all in Ireland. The company plans to scale back operations at its facilities in Sanford, SC; Andover, MA; Guayama, PR; Havant, UK; Illertissen, Germany; and Newbridge, Ireland.
Pfizer says the timing for specific plant closings will depend upon the complexity of operations, the amount of time required for product transfers and other business requirements. The company says that in an effort to preserve jobs and reduce the impact to communities, it will explore opportunities to sell off plants slated for closure. “Success will depend on a number of market factors, including present demand for pharmaceutical manufacturing facilities,” according to a release.
Other closures and reductions may be in the offing as Pfizer integrates operations from its 2009 acquisition of smaller rival Wyeth Pharmcaeuticals. The reductions Pfizer announced Tuesday stem from a review of its aseptic, solid-dose and biotechnology medicine lines, as well as its consumer healthcare operations; a review of the company’s animal health manufacturing network is expected to be completed by the end of June. Studies of the nutrition and emerging markets plant networks will begin later this year.
Currently, Pfizer operates 78 manufacturing plants worldwide. The tally includes 38 facilities that came with Pfizer’s $68-billion merger with Wyeth. However, Ricciardi told the New York Times on Tuesday that the axe will not fall disproportionately on former Wyeth sites.
The announcement follows last week’s report on GlobeSt.com that Pfizer is putting its 650,000-square-foot 685 Third Ave. on the market. A Pfizer spokeswoman told GlobeSt.com that an unspecified number of employees at 685 Third would either be laid off or relocated to its headquarters building at 235 E. 42nd St.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
