MORGANTOWN, W.Va. — Mylan Pharmaceuticals plans to trim less than 10 percent of its global workforce including several non-union positions in Morgantown, the company confirmed Monday.
Employees learned of the cutbacks during a morning conference call. The reductions reportedly affect facilities in Morgantown, Washington, D.C., St. Albans City, Vt., and Greensboro, N.C.
A source said non-union employees were given a Dec. 13 deadline to accept severance packages or re-apply for their jobs. Employees accepting voluntary buyouts would work until Jan. 11.
Employees were advised layoffs are “highly likely” if Mylan doesn’t meet its target number of voluntary separations.
In a statement released to MetroNews on Monday night, Mylan said the cutbacks are an effort to be more efficient.
“Since 2015, Mylan has made a number of significant acquisitions, and as part of the holistic, global integration of Mylan we are focusing on how to best optimize and maximize all of our assets, including reducing redundancy across our organization across all geographies. As part of this process, we will be taking actions that will impact less than 10 percent of our global workforce,” the company said.
Mylan didn’t specify how many jobs it is seeking to cut in Morgantown.
Wayne Ranick, communications director for the United Steel Workers, said the drugmaker doesn’t currently plan to slash any union jobs.
“My understanding is that no USW-bargaining unit workers are facing layoffs, only management personnel.”
Mylan stock opened Monday trading at $36 per share, less than half what the Israeli company Teva Pharmaceuticals offered during a takeover bid that fizzled in 2015.
Mylan recently agreed to a $465 million settlement with the U.S. Department of Justice over its EpiPen product. The price of of the auto-injector and the EpiPen Jr. has increased more than 500 percent in nine years. Mylan CEO Heather Bresch was grilled by House Oversight and Government Reform Committee on Capitol Hill in September over the price hike that coincided with her own salary increase that went up at a similar rate.
Mylan currently monopolizes the market on the life-saving drug, though Teva is developing its own generic product for 2017.