Dive Brief:
- Baxter International will close its manufacturing operations in Acton, Massachusetts, laying off 59 people in the process.
- The layoffs will occur between May 3 and June 30, according to a Worker Adjustment and Retraining Notification notice Baxter filed with the state government on Feb. 29.
- News of the layoffs comes roughly 13 months after Baxter outlined plans to eliminate about 3,000 positions in response to significant macroeconomic challenges and a shift to a new operating model.
Dive Insight:
The Acton site was one of 14 principal manufacturing facilities run by Baxter’s healthcare systems and technologies segment as of the end of last year, according to a U.S. Securities and Exchange Commission filing.
“After a careful review, we made the difficult decision to close manufacturing operations at our Acton location,” a Baxter spokesperson wrote in an emailed statement. “We are moving these operations to another facility within Baxter’s integrated supply chain network. We appreciate our Acton-based colleagues’ dedication and service and are providing transition benefits to impacted employees.”
The company acquired the leased site through the $10.5 billion acquisition of Hillrom that it struck in 2021. The plant was one of 22 principal manufacturing facilities included in the takeover.
The decision to close the Acton plant comes three months after Baxter shuttered a facility in Opelika, Alabama. The Opelika site was one of three Baxter facilities that produced dialyzers. Baxter identified the closure of the facility as a way to streamline its manufacturing footprint and improve profitability. According to Baxter, the “competitive environment” increased global supply of products made at the Opelika site.
Baxter’s closure of the Opelika facility could be the precursor to a broader retreat from kidney care. This week, the company said it has held talks with private equity investors about a potential sale of its kidney care segment. Baxter plans to either sell or spin off the unit in the second half of 2024.