Catalent cuts 150 leadership, support jobs in Bloomington
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After 400 jobs were cut last December, New Jersey-based Catalent Inc. is ushering a new round of layoffs affecting 150 jobs in Bloomington, primarily in leadership and supporting positions.
According to an internal email obtained by the Herald-Times, Anibal Carlo, vice president and general manager of the Bloomington facility, told his staff that the branch’s operations were too expensive and unsustainable. The move was made to reduce duplicate roles and inefficiency.
“Unfortunately we didn’t anticipate the unprecedented complexity involved in exiting the pandemic, both operationally and financially, and the difficulty of pivoting this site to non-COVID programs,” he said in the email.
Dozens of job openings were also eliminated.
Catalent spokesperson Laine Mello said the Bloomington location is still a critical spoke in its overall growth and commended its strides during the pandemic.
“As the pandemic has receded, global demand for vaccines has declined sharply, leading to a range of challenges at our facility,” she said in a statement to Inside INdiana Business. “As a result, we have needed to make a number of personnel changes in Bloomington. These changes are unfortunate but necessary to help ensure Catalent is able to continue operating in a sustainable manner.”
A larger issue
Catalent is a contract drug manufacturer that significantly increased its operations at the Monroe County location during the pandemic to meet the demand for COVID-19 vaccines. It’s the same plant that the company blames in part for productivity issues and unexpected costs.
Then-General Manager Andrew Espejo announced a layoff in December, cutting 400 jobs — a move he said was an attempt to manage costs in a “challenging global economic environment.”
In April, the company said in a statement it was conducting an internal review and conducted several changes, like management and operational changes, to address “the root causes of issues identified.”
The two recent rounds of layoffs come after Catalent announced a $350 million plan in April 2022 to invest in the Bloomington plant and subsequently add 1,000 jobs.
It’s not just the Bloomington location experiencing difficulties; the entire company has hit a rough patch.
Catalent said it looks to reduce its fiscal 2023 net revenue guidance by over $400 million. It also expects its income statement and balance sheet to reflect a goodwill impairment in its consumer health business of more than $200 million.
Stock prices have taken several dips since last November. Shares fell about 18% at close Thursday.
City reaction
Catalent came to town when they acquired the operation from Cook Pharmica in 2017.
Alex Crowley, city director of economic & sustainable development, said Catalent is still a “significant and important employer’ in the city and has grown their employee base nearly four-fold.
“They have invested heavily in their Bloomington facility, including a recent $350 million capital investment, all of which is good for the local economy,” he said. “We regret their need to adjust their headcount and are especially eager to help the affected workforce land solidly in alternate local employment.”
Crowley said the city of Bloomington and other economic development organizations will assist with the layoff by providing those affected with resources and other assistance. He said the company has worked with the city during such decisions.
“We are pleased to understand from them that this allows them to significantly improve their business efficiencies and positions them well for the future,” Crowley said.