Embecta (Nasdaq:EMBC) filed with the state of Massachusetts to confirm a workforce reduction affecting 118 employees.
The state received Embecta’s Worker Adjustment and Retraining Notification (WARN) submission on Nov. 26 — the same day it announced plans to discontinue its insulin patch pump program and restructure. The discontinuation of the patch pump program came not long after rumors of the company exploring a sale began circulating in July.
Embecta’s headcount reduction comes at the BD Diabetes spinoff’s Andover, Massachusetts, facility. According to the state, the company plans to enforce its layoffs between Feb. 3, 2025, and Aug. 1, 2025.
A company spokesperson told MassDevice via email that the company expects its restructuring efforts to impact approximately 125 employees. The vast majority of those are located at the Andover site and associated with the patch pump development program.
“Making decisions that impact our employees is never easy and is always done with careful consideration and respect, as we value all our team members’ contributions to Embecta,” the spokesperson said. “We will provide severance, healthcare benefits and outplacement assistance to help our colleagues find their next opportunity. As noted in our earnings release, we expect the restructuring plan to be substantially complete during the first half of FY25.”
Parsippany, New Jersey-based Embecta won FDA approval for a disposable patch pump system in September. Up until the program discontinuation, the company also shared plans for a closed-loop automated system. However, the company has bowed out of that market, which features the leading Insulet Omnipod platform of pumps. The space also has expected entries from Medtronic and Tandem Diabetes Care in the future. PharmaSens submitted its patch pump to the FDA last year.
Embecta expects between $35 million and $45 million in pre-tax charges in 2025 related to restructuring. It anticipates completion in the first half of 2025. The company projects annual cost savings of $60 million to $65 million from this restructuring.
Devdatt (Dev) Kurdikar, Embecta CEO, said last month that the company believes its approach “will streamline operations, reduce costs and enhance our profitability and free cash flow profile.”
