Up to 340 jobs are set to be lost at the Viatris manufacturing plant in Damastown, Co Dublin after the generic drugs giant announced it is to wind down operation there in 2028.
In a statement, the company said the decision follows the completion of an enterprise-wide strategic review which had “identified opportunities from across our company to optimise our organisational structure, sharpen our resource allocation and increase our operational efficiency”.
The company said there will be no immediate reduction to numbers employed at the site and consultations will take place with employee representatives.
“The decision to close the Damastown site was a difficult one, and Viatris leadership remains committed to an open consultation process and to treating those impacted fairly and with respect,” it said.
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“The company will work with employee representatives on a plan for workforce reductions, including comprehensive redundancy packages. These will likely include pay and healthcare continuation, career counselling services and continued coverage under the employee assistance programme, subject to consultation with employee representatives.”
Viatris was formed in late 2020 through the merger of generics drug company Mylan and the generics business of Pfizer to challenge Teva as the largest genierc drugs producer worldwide.
Viatris makes both generic and branded drugs, including erectile dysfunction drug Viagra, anti-anxiety medication Xanax, epilepsy treatment Lyrica, arthritis treatment Celebrex and Lipitor for the treatment of high cholesterol. It had global sales of $14.3 billion last year.
On Thursday, as it announced its fourth quarter and full year results in the US, the company said it expects to reduce its workforce of more than 30,000 by about 10 per cent over the coming three years.
The reorganisation, it said, would cost between $700 million and $850 million but would generate savings of between $600 million and $700 million once fully implemented.
The company employs 1,600 people in Ireland according to its website although it had previously announced the closure of its facility at Little Island in Cork where 200 people are employed, also scheduled to take place in 2028.
In 2020 it announced the closure of its Baldoyle plant where about 440 people worked and a further 70 jobs were lost at its corporate head office here a year later.
Despite this, the company says it will retain “a significant presence” in Ireland with a plant in Galway manufacturing sterile injectables and carrying out R&D work while another facility in Dublin produced dry powder inhalers. There is also a corporate office at Northern Cross.
“Today’s announcement is not about the performance of its people or the community at Damastown,” it said. “Viatris is grateful for the commitment shown at this site, and the teams across Ireland continue to play an important role in the company’s future as it increases its focus on areas with the greatest potential to impact patient’s lives.”
