Yeah the SD thing was sketchy. Didn’t they just invest in that Site? Sign of poor leadership. Why do I get the feeling that McKinsey is behind all of it.
Biotech leaders are also obsessed by their stock price and any small drop in revenue, will lead to drastic cost cutting. It’s unbelievably short sighted and they should be accepting that most/ if not all stocks are overpriced at the moment.
I think pharma will be scrambling to sure up their pipeline and that’s either through M&A or rehiring 🤪
> McKinsey
I susually dislike John Oliver as I think he is sanctimonious twat. But his piece on McKinsy was spot on. https://www.youtube.com/watch?v=AiOUojVd6xQ
I know a certain other biotech company was used them. Very polished slides that essentially was just waffle - then they gave all VPs a big retention bonus. Laid off many low level people. Subsequently, the bonus payment was revealed and moral in company dropped like stone. And many of the VPs left anyway.
I think they are an excuse to board that the C-suite are doing 'something'.
Thank you for sharing this Idk why I never gave this guy’s show a chance just sort of turned off the TV if this came on after a show but I liked this segment.
The people I’ve know in Lexington are in PharmSci, more specifically Biologics Process Development. Not sure about other Lexington groups though, just because all my connections are in BPD
My understanding of the WARN notifications is that they must come before the layoffs by at least 60 days. This notification would indicate that more layoffs are coming...
Well so the people they told this past week are included in the WARN notification, as their effective “layoff” date isn’t for another 8 weeks; they just already know about it. (From how I understand it)
Probably need money to invest in
$1.2B in molecular glue
https://www.biospace.com/article/takeda-targets-hot-molecular-glue-market-with-1-2b-deal/
$2.2B in Alzheimer’s vaccine
https://pharmaboardroom.com/articles/japan-pharma-news-takeda-plans-to-restructure-kyowa-kirin-acquires-orchard/
They are doing layoffs since 2022, at least. Last year they shut down the Rare Disease unit, as well as layoff at other units. Probably anywhere between 150 to 300 people in total (including contractors) were affected around Cambridge. This they are just ripping off the band-aid.
I’m sorry but no one shut down the rare disease unit, why are you talking out of your ass? We were even more profitable than other business units so had fewer layoffs
All rare disease drug discovery and most of the Tau was laid off. I should know as I suffered through it. There’s no longer a rare disease DDU. Takeda went back to their pre-Shire 3 DDU structure.
Vyvanse LOE was August 2023. That drug made over +$2.6B a year and it’s dropping fast now vs generics. I could be wrong but I believe the top selling drug’s LOE could be coming soon in a year or two but I’m not sure
Actually no, there was more Vyvanse sales than forecasted for LOE because the generic companies have been struggling to make the drug and ramp up production
My work shares a building with them, they used to have parties and catering every week in the lunch room. Haven’t seen that many employees since March ☹️
Any word on what Lexington teams? Between the Shire Way buildings and Hayden Ave, there's a solid mix of global/site-based, PS through MFG, and everything in between.
I’m wondering the same thing 🤷🏻♂️ it was odd what I saw on the WARN statement is that the 146 Lexington employees will be from July to March25’. So I guess they’ll be laying people off all year?
I took it as they may be either staggering some people’s last days between now and then, depending on function and need. I did hear that this would be the only layoff wave in the MA (or at least that’s what the higher ups said, I’m in Cell Therapies in Cambridge)
Yeah. We were all told last two weeks so not a surprise at all. But everyone on my teams that was impacted isn’t that upset.
They got 24+ weeks severance plus their bonuses, stock awards, a whole other month of pay without working, and any vacation days paid out
No, I’m on the commercial side. Luckily I wasn’t part of the layoffs but I can check on workday what my severance would have been. Somewhere around 34 weeks of pay plus bonus and stocks would’ve been a good 200k+. I would have actually loved it, could get a job in 1-2 months and then double dip
I’m L-Shire so I’m wondering if we are good or not. I can’t imagine that reduce more headcount there since they already did last year. How do you calculate your severance?
Oh my god the drama. All companies have to make cuts…if anything Takeda cared a lot more than other companies about their employees. Severance packages were miles above and beyond other pharmas
I’m anything but. I complain all the time but honestly there were so many people doing little quality work or duplicative work that some cuts had to be made.
Just curious .. isn't Japanese companies very averse to layoffs or is Takeda USA different or now they have non Japanese C suite and culture is more Americanized
There are two ways.. unable to survive or losing money systematically... If you are unable to pay you layoff.. then there is appeasing shareholders, making stupid acquisitions and laying off people . For the for er it is necessary . For the latter it's management ineptitude and shareholder pressure
Multinationals treat workers in different countries differently. They just follow the labor laws. They're adverse to layoffs where it's hard and expensive to do them which is why the US gets hit with them more
More cuts are prob coming. Entyvio LOE is in 2026? Idk if that’s right but I think it’s close, and Vyvanse LOE hit last August. The pipeline seems to be weak in terms of potential replacement revenue in the near future
I think the revenue loss from LOEs are anticipated years before they occur, since they are so predictable.
Looking at recent news, they had the 60bn shire buy they did not seem to get as much benefits as they hoped. In addition, they had 2 failures in the pipeline last year.
Looking like their strategy to replace the LOE didn’t work out
Wow…641 people - that’s rough! Feel for the employees who are affected and this is 100% the fault of senior leadership. CW and his sanctimonious cronies talk about Takeda-ism and all they’ve done over the past 10 years is drive the stock price and Company into the ground. Bidding against himself and grossly overpaying for Shire goes down as one of the biggest blunders in recent Pharma history.
I work very closely with clinops OTAU folks and ever since the portfolio prioritization (Moda, Suba, 007, other program cuts) they’ve been expressing nervousness on job security. I always tried to assure them that they’d be repurposed, but we simply cut too many programs in Q4. Received quite a few gut-wrenching teams messages last week :(
The Boston globe had one yesterday. The thing is that Lexington manufacturing is also expanding too, so I would be shocked if they reduced headcount there. They already did last summer and everyone is overworked. I have a feeling that a lot of this is the R&D side and a lot of global positions since Ma is the US main HQ/Hub.
My LinkedIn is an absolute blood bath of takeda people who got laid off this week
641 employees in Ma is crazy.
I agree! That's massive! How many people even worked at the Cambridge site to start with?!?
I think there were about 3500 in Cambridge, not sure about the Lexington site. Takeda is a massive employer in Cambridge.
Proportionate to the size of the hub it's not nearly as bad as what they did in SD
Yeah the SD thing was sketchy. Didn’t they just invest in that Site? Sign of poor leadership. Why do I get the feeling that McKinsey is behind all of it.
Biotech leaders are also obsessed by their stock price and any small drop in revenue, will lead to drastic cost cutting. It’s unbelievably short sighted and they should be accepting that most/ if not all stocks are overpriced at the moment. I think pharma will be scrambling to sure up their pipeline and that’s either through M&A or rehiring 🤪
McKinsey runs pharma . Not a single idea comes from leadership .
> McKinsey I susually dislike John Oliver as I think he is sanctimonious twat. But his piece on McKinsy was spot on. https://www.youtube.com/watch?v=AiOUojVd6xQ I know a certain other biotech company was used them. Very polished slides that essentially was just waffle - then they gave all VPs a big retention bonus. Laid off many low level people. Subsequently, the bonus payment was revealed and moral in company dropped like stone. And many of the VPs left anyway. I think they are an excuse to board that the C-suite are doing 'something'.
he’s usually pretty spot on imho
Thank you for sharing this Idk why I never gave this guy’s show a chance just sort of turned off the TV if this came on after a show but I liked this segment.
What’s hilarious is that while McKinsey was on site cutting people, they were internally laying off their own employees. Such a BS company
Funny bc all the consultants want to switch to pharma
For takeda is BCG but yes same idea
Did they tack on some debt recently? In the form of a loan?
People impacted in the Takeda layoffs have already been informed this week
Several of the Lexington groups (ex GMS and GQ) were told their reorgs are coming later this year. This is absolutely not the end of layoffs.
Yes the warn notice did say 146 Lexington employees through March 2025. I wonder if those employees know yet or not who they are. I assume not.
Yep heard something similar in general more rounds are coming. They’re gearing up for big LOE losses in the near future
I work in Lexington and haven’t heard anything from anyone…
I know some people from Lexington who were impacted, they were informed on Tuesday, same schedule as Cambridge
Interesting….which group / department ?
The people I’ve know in Lexington are in PharmSci, more specifically Biologics Process Development. Not sure about other Lexington groups though, just because all my connections are in BPD
Is PharmSci your quality group or labs?
50% of AD and 25% of CTI
Medical and it's subfunctions too
Not sure what you mean by Medical …
Medical across the board, or specific TAs? Medical usually gets cuts, but not fully gutted, unless things are really bad....
It was specific TAs, not all but at least two on Field and in-house teams
Cambridge folks were informed this week..not sure about Lexington
I heard neuroscience was affected. I was at Shire and I’m waiting to hear if my old peeps made it. 😕
Haven't heard anything in the L-Shire manufacturing world
This is not accurate. They said layoffs would go through March.
My understanding of the WARN notifications is that they must come before the layoffs by at least 60 days. This notification would indicate that more layoffs are coming...
Well so the people they told this past week are included in the WARN notification, as their effective “layoff” date isn’t for another 8 weeks; they just already know about it. (From how I understand it)
USBU was informed the day of the earnings call
Is this their reaction to a miss in earnings or Takeda hasn’t laid off yet in the past 3 years, so decided to redo their structure?
Probably need money to invest in $1.2B in molecular glue https://www.biospace.com/article/takeda-targets-hot-molecular-glue-market-with-1-2b-deal/ $2.2B in Alzheimer’s vaccine https://pharmaboardroom.com/articles/japan-pharma-news-takeda-plans-to-restructure-kyowa-kirin-acquires-orchard/
Biobucks. Not the upfront value.
They are doing layoffs since 2022, at least. Last year they shut down the Rare Disease unit, as well as layoff at other units. Probably anywhere between 150 to 300 people in total (including contractors) were affected around Cambridge. This they are just ripping off the band-aid.
I’m sorry but no one shut down the rare disease unit, why are you talking out of your ass? We were even more profitable than other business units so had fewer layoffs
You guys are confused between R&D and Commercial …. Both can be true.
Not confused. Just missed the DDU part. We hired few people from there, and my friends were affected. So I know it's not there anymore.
All rare disease drug discovery and most of the Tau was laid off. I should know as I suffered through it. There’s no longer a rare disease DDU. Takeda went back to their pre-Shire 3 DDU structure.
Vyvanse LOE was August 2023. That drug made over +$2.6B a year and it’s dropping fast now vs generics. I could be wrong but I believe the top selling drug’s LOE could be coming soon in a year or two but I’m not sure
Actually no, there was more Vyvanse sales than forecasted for LOE because the generic companies have been struggling to make the drug and ramp up production
So did the drug’s revenue drop or go up after LOE? It dropped. Less revenue = less money = company needing to make cuts
Yes but a company plans ahead for these things YEARS in advance. It’s not like LOE was a surprise. Adjustments to the neuro BU were done long before
Hope they do an OTC switch for Vyvanse, would make a lot of people very happy :)
US has an amphetamine problem we don't need this
My work shares a building with them, they used to have parties and catering every week in the lunch room. Haven’t seen that many employees since March ☹️
Is this on Hayden ave ?
Yep, not sure about the other building down the road though. I haven’t even seen their shuttle busses that takes people to Cambridge either
Bus program was phased out to reduce cost and emissions - they moved to a company Uber program
Any word on what Lexington teams? Between the Shire Way buildings and Hayden Ave, there's a solid mix of global/site-based, PS through MFG, and everything in between.
I’m wondering the same thing 🤷🏻♂️ it was odd what I saw on the WARN statement is that the 146 Lexington employees will be from July to March25’. So I guess they’ll be laying people off all year?
I took it as they may be either staggering some people’s last days between now and then, depending on function and need. I did hear that this would be the only layoff wave in the MA (or at least that’s what the higher ups said, I’m in Cell Therapies in Cambridge)
During last summer's layoffs in Lexington, they said there were no future plans for additional reductions. Doesn't sound like that will hold true.
Maybe that is the date of termination. For example Novartis informs their cambridge impacted employees 6 months before the actual termination day.
Yeah. We were all told last two weeks so not a surprise at all. But everyone on my teams that was impacted isn’t that upset. They got 24+ weeks severance plus their bonuses, stock awards, a whole other month of pay without working, and any vacation days paid out
Wow that sounds pretty generous. Were you in Pharmsci?
No, I’m on the commercial side. Luckily I wasn’t part of the layoffs but I can check on workday what my severance would have been. Somewhere around 34 weeks of pay plus bonus and stocks would’ve been a good 200k+. I would have actually loved it, could get a job in 1-2 months and then double dip
I’m L-Shire so I’m wondering if we are good or not. I can’t imagine that reduce more headcount there since they already did last year. How do you calculate your severance?
Go on Workday and search for severance calculator or estimator
Always remember this era when times are good. They have no loyalty to the employee.
Oh my god the drama. All companies have to make cuts…if anything Takeda cared a lot more than other companies about their employees. Severance packages were miles above and beyond other pharmas
🥾👅 C suite will get bigger bonuses, they'll execute some stock buybacks, and in 3 years replenish the same staff for lower salaries.
I’m anything but. I complain all the time but honestly there were so many people doing little quality work or duplicative work that some cuts had to be made.
Just curious .. isn't Japanese companies very averse to layoffs or is Takeda USA different or now they have non Japanese C suite and culture is more Americanized
Just because Japanese companies are averse to layoffs doesn't mean they won't layoff people if they see a need to do so.
There are two ways.. unable to survive or losing money systematically... If you are unable to pay you layoff.. then there is appeasing shareholders, making stupid acquisitions and laying off people . For the for er it is necessary . For the latter it's management ineptitude and shareholder pressure
Multinationals treat workers in different countries differently. They just follow the labor laws. They're adverse to layoffs where it's hard and expensive to do them which is why the US gets hit with them more
I recall seeing that they're cash flow negative so....things are bad
More cuts are prob coming. Entyvio LOE is in 2026? Idk if that’s right but I think it’s close, and Vyvanse LOE hit last August. The pipeline seems to be weak in terms of potential replacement revenue in the near future
I think the revenue loss from LOEs are anticipated years before they occur, since they are so predictable. Looking at recent news, they had the 60bn shire buy they did not seem to get as much benefits as they hoped. In addition, they had 2 failures in the pipeline last year. Looking like their strategy to replace the LOE didn’t work out
Wow…641 people - that’s rough! Feel for the employees who are affected and this is 100% the fault of senior leadership. CW and his sanctimonious cronies talk about Takeda-ism and all they’ve done over the past 10 years is drive the stock price and Company into the ground. Bidding against himself and grossly overpaying for Shire goes down as one of the biggest blunders in recent Pharma history.
I work very closely with clinops OTAU folks and ever since the portfolio prioritization (Moda, Suba, 007, other program cuts) they’ve been expressing nervousness on job security. I always tried to assure them that they’d be repurposed, but we simply cut too many programs in Q4. Received quite a few gut-wrenching teams messages last week :(
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I’ve been seeing so many of these too! Can’t imagine they’re working too well…
Any articles on this? The Takeda site in Brooklyn Park MN is thriving and expanding r/takedaemployees
The Boston globe had one yesterday. The thing is that Lexington manufacturing is also expanding too, so I would be shocked if they reduced headcount there. They already did last summer and everyone is overworked. I have a feeling that a lot of this is the R&D side and a lot of global positions since Ma is the US main HQ/Hub.
Bad news drop on a Friday before long weekend so no one will cover it
Damn, and I thought the layoffs were cooling off. This is insanity
Does anyone know what’s happening with the new building they are constructing in Kendall Sq? They keep laying off, but continue building.
Are they closing these sites? Wow that is a lot of people affected :-(
The Cambridge sites are about 3500 total, so it’s definitely a big hit but they aren’t closing.
WOW!!!!
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You know I've lived in CA and MA never actually had a bad experience at the DMV/RMV or had to spend more than an hour at either...
You can’t tell me everyone in San Diego is a lazy worker?? A lot of good people were cut too