Biotech drugmaker Amgen laying off 2,400-2,900, closing 4 sites, mainly to fund drug launches

Associated Press

Biologic drugmaker Amgen plans to lay off 12 percent to 15 percent of its worldwide workforce and close sites in Colorado and Washington state to fund investments, particularly launching new drugs.

The layoffs will happen this year and next, eliminating 2,400 to 2,900 jobs, mostly in the U.S.

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Amgen, which announced strong second-quarter results Tuesday, said it will streamline the company, reduce management layers and reduce its real estate footprint by 23 percent.

The company, based in Thousand Oaks, California, anticipates charges of $775 million to $950 million, mostly in 2014 and 2015. It expects modest 2015 savings, but expense reductions in 2016 of about $700 million, versus 2013. Most savings will be reinvested, including expanding operations in the biotech hubs of Cambridge, Massachusetts, and South San Francisco, California.