BD
(NYSE: BDX)
announced plans to eliminate 60 positions at its manufacturing facility based in Drogheda, Ireland.
A statement provided by a BD spokesperson confirmed a targeted reduction of 60 positions due to a combination of factors. These include the effects of the COVID-19 pandemic and the company’s spinoff of its diabetes business, Embecta.
The company announced the creation of 100 new jobs at the Drogheda facility, plus a €62 million investment there, in December 2021. This investment aimed to upgrade site equipment and expand production of its PosiFlush syringes.
BD plans for the reduction to take place over 15 months to right-size manufacturing operations with “today’s realities.”
Given the length of time, BD expects natural attrition and retirements to reduce the number of employees actually affected. For those affected, the company said it remains committed to treat each person “with compassion and respect.” A report from the Irish Independent said Sinn Féin TD for Louth and East Meath Imelda Munster TD called the job cuts “a hammer blow to the loyal employees and employment in Drogheda.”
“This difficult strategic decision is not a reflection on the performance of the site,” the BD statement said. “The site has met our operational expectations, but other business factors drove these actions. BD remains committed to growing in Ireland and intends to continue investing in its facilities across the country.”
Why BD plans to cut jobs in Ireland
BD cited the extreme shifts in demand for certain products as a result of the COVID-19 pandemic. It increased demand for products used on COVID-19 patients and lessened demand for products not used amid suspensions of non-critical procedures. That led to low inventory for critical products and, conversely, high inventory for non-critical offerings.
As demand began to normalize over time and logistic transit times become more reliable, BD intends to right-size its manufacturing operations. It aims to realign current inventory and future demand.
In addition to the changes brought on by COVID-19, the spinoff of Embecta played its part in this decision. The Drogheda site manufactured components for the pure-play diabetes company since the spinoff last year. Embecta has operations in Dún Laoghaire and plans to take responsibility for manufacturing those components. This results in the reduction of a production line in Drogheda.
BD has been an active member of the Drogheda community for nearly 60 years, and we are dedicated to the success of our employees and the community.
“The facility in Drogheda was the first BD manufacturing plant in Ireland, and BD has invested nearly $160 million worth of capital improvements in the last 10 years alone,” BD’s statement said. “The facility currently employs approximately 235 people. BD has consistently invested and expanded our presence in Ireland to grow to more 1,100 people across four facilities today.”
Just last month, BD held a grand opening ceremony for a new $4.3 million (€4 million) R&D facility in Blackrock, Dublin. BD also announced an additional $32.1 million (€30 million) investment to expand its Enniscorthy, Wexford manufacturing facility.
