Outsourcing-pharma.com reported INC’s plans to close the office in Old Lyme yesterday after spotting a notice posted on the State’s Department of Labor website under US worker adjustment and retraining notification (WARN) regulations.
The one line notice states that 66 workers will be laid off by July 31 – various media reports suggest that 81 people are currently employed at the office.
In a statement emailed to Outsourcing-pharma.com today INC confirmed the closure plan and set out the business rationale for its decision.
“The nature of our business as a provider of outsourced Phase I-IV clinical development services requires us to maintain specialized personnel in specific geographies with skill sets and therapeutic expertise aligned with customer demand.
“To better balance resources against current business needs, INC Research has made the decision to adjust its current staffing and close its Old Lyme, Connecticut location by midsummer 2012.”
INC did not go into the specifics of these business needs. However, the news follows just a few days after the firm told Outsourcing-pharma.com that it is seeking more co-development partnerships, so perhaps that is a factor.
The contract research organization (CRO) also told us last week that functional service provider (FSP) deals are ‘centre stage’, which now seems somewhat ironic given that Kendle – former operator of the Old Lyme office – was something of an FSP pioneer through its relationship with Pfizer.
Reassignment
INC also hinted that it may offer some employees affected by the Old Lyme closure – presumably the 15 not being laid off – other jobs.
“This action was initiated following a careful review of existing resources, taking into consideration key factors such as geographic location and project requirements.
“Personnel decisions are always difficult; however, this is part of our broader plan to support our strong business outlook based on customer needs. Wherever possible, affected employees were reassigned to other roles within the organization.“