Update: Novartis announces layoffs in Lincoln - News, Weather and Sports for Lincoln, NE; KLKNTV.com

Update: Novartis announces layoffs in Lincoln

Posted: Updated:

By: Kayla Bremer
kbremer@klkntv.com

Devastating news for hundreds of people Tuesday night as they learn they'll lose their jobs over the next two years.

Novartis, a pharmaceutical company that's located off Highway 6 east of Lincoln will be cutting 300 positions or 40 percent of its total workforce by 2015.

The announcement comes after the release of the company's first quarter financial report.  Novartis says they're implementing a new supply chain strategy that will use a combination of their own facilities and third–party manufacturers for supplying the products globally.

Because of this, Novartis says the Lincoln plant will only make solid and powder–form medications such as Excedrin and Theraflu.

In a statement released by Novartis, they say:

"The decision to reduce 300 positions in Lincoln through 2015 was difficult but necessary.  By simplifying the site, we will create stronger quality systems and capabilities that will ensure its long–term success."

Wendy Birdsall, President of the Lincoln Chamber of Commerce says there have been very obvious issues with the Lincoln operation of Novartis.  The Lincoln site was temporarily shut down in December of 2011 after a manufacturing issue that affected some of the over–the–counter drugs.

Birdsall says they'll do what they can to help workers being let go find other jobs.

This news comes two days after Duncan Aviation announced 75 of it's employees will be affected by the loss of a business account.  Those jobs are both in Lincoln and in Battle Creek, Mich.  The company says it's already found positions within the company for about half of the 75 workers and they're working on finding placement for the other half.

Posted By:  KLKN Newsroom
8@klkntv.com

The company announced layoffs at its Lincoln plant in its first quarter financial report Wednesday.

The Swiss pharmaceutical company plans to cut 300 positions or 40% of it's workforce at it's Consumer Health division based in Lincoln over the next two years.

In its first quarter report, the company says:

"We have made the decision to restructure and simplify the Lincoln manufacturing plant to focus long term production on two product forms – solids and powder – principally for Sentinel, Excedrin and Theraflu. This will enable the site to focus on operational excellence, with minimal product complexity.  The reduction of complexity at the Lincoln facility will lead to a reduction of approximately 300 positions or 40% of the total workforce at the site in phases over the next two years."

The facility was temporarily shut down last year after a manufacturing issue that affected some of the over the counter drugs.

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