Shire To Relocate Over 500 Jobs To New Massachusetts Headquarters
November 19, 2014
By Riley McDermid, BioSpace.com Breaking News Editor
Shire plc said today that it will relocate over 500 positions to Lexington, Mass., from its Chesterbrook, Penn., site and will make Lexington its American headquarters as it continues its global streamlining plan, “One Shire.”
Its chief financial officer will now be based out of Lexington, but the company is still searching for permanent candidates after a series of interim placeholders found internally.
The company estimates that simplifying its principal locations to Massachusetts and Switzerland will save around $25 million annually, beginning in 2016.
Shire Chief Executive Officer Flemming Ornskov said that employees based in Chesterbrook and the greater Philadelphia area have been instrumental to Shire’s growth and evolution and as such are crucial to relocation.
“We’ve made the decision to consolidate our U.S. operations in the Massachusetts area to streamline operations and drive further efficiencies in the way we run our business and serve patients,” said Ornskov. “Shire has a great opportunity to combine our Chesterbrook and Lexington talent with the leading biotech resources in the Massachusetts area, and we consider ready access to these resources an important element in the future growth of our company.”
Shire said it will relocate employees in several phases beginning in the first quarter of 2015, with completion slated for the first quarter of 2016.
“All directly impacted employees who do not relocate will be offered severance, outplacement service and other employee assistance,” it said in a statement. Shire did not specify the number of employees who may not be relocating under the plan.
Shire also said Wednesday that it has finalized the departure date of interim Chief Financial Officer James Bowling for Feb. 28, 2015. The move was previously announced. Jeff Poulton, head of investor relations, will assume the role of interim CFO effective Jan. 1, 2015.