Embecta will cut approximately 125 jobs in Andover, Massachusetts, after announcing last week that it will discontinue its insulin patch pump program, a company spokesperson told MedTech Dive in an email on Thursday.
The “vast majority” of people affected by the restructuring are based at the diabetes device company’s Andover site and connected with the patch pump development program, spokesperson Christian Glazar wrote.
Meanwhile, Embecta submitted a Worker Adjustment and Retraining Notification filing on Nov. 26 showing 118 people would be affected by job cuts at its Andover facility. The layoffs are slated to take place between Feb. 3, 2025, and Aug. 1, 2025, with the majority taking place in February, according to a WARN letter obtained by MedTech Dive.
The affected positions are largely in engineering and research and development. The cuts also include Embecta’s chief medical officer, according to the letter.
The Boston Business Journal first reported the cuts.
Embecta received Food and Drug Administration approval for an open-loop patch pump in September, indicated for people with Type 1 or Type 2 diabetes. However, CEO Dev Kurdikar told investors last month that the company did not intend to do a full-market launch of the open-loop pump, where users control insulin delivery, adding that “several more years of significant investment” would be needed to develop a closed-loop version, which automatically delivers insulin as needed.
In its fourth-quarter earnings report, Embecta forecast a range of from $25 million to $30 million in cash charges related to planned workforce reductions and other associated costs. Glazar said the company will provide employees with severance, healthcare benefits and outplacement assistance.
The company expects annual pre-tax savings between $60 million and $65 million. Embecta plans to put the funds into its core business and paying down debt.