Amgen to close Bothell, Seattle facilities

BOTHELL — Despite “robust growth,” Amgen, one of the world’s biggest pharmaceutical companies, is shutting down operations in Bothell and Seattle, which means the loss of several hundred jobs in Washington.

The company also plans to pull out of Colorado and reduce its headquarters workforce, while expanding in biotechnology hubs in San Francisco and Cambridge, Massachusetts. The moves are expected to trim operating costs, Amgen CEO Robert Bradway told investors and stock analysts on Tuesday.

In all, the company plans to cut 2,400 to 2,900 jobs — about 12 to 15 percent of its global workforce — by the end of 2015.

Bradway praised workers at the locations to be closed, saying they “have made enormous contributions to advancing biotechnology over the years and the surrounding communities have been very supportive, so it is with great reluctance that we acknowledge the need to exit.”

Amgen, which is based in Thousand Oaks, California, is talking with “third-parties about potential use of the facilities,” he said.

The changes will shrink Amgen’s physical presence by 23 percent, and reduce operating costs by about $700 million by 2016 as compared to 2013. The savings will be used to support new product launches, according to a news release from the company.

Amgen is also considering other steps to increase efficiency and trim costs, according to the release.

The company did not immediately respond to requests for comment.

The Bothell facility has fewer than 100 workers, according to news reports.

The company has about 660 research staff in Washington and 200 in Colorado, according to FierceBiotech, a news website that covers the biotechnology industry.

Despite the closures, Amgen’s revenue increased 11 percent in the second quarter of the year, as did its earnings per share, which saw a 25 percent jump to $2.37.

“From a position of strength, we have announced today restructuring initiatives that will allow us to reallocate resources to invest in our upcoming launches and drive growth,” Bradway said in the release.

Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com; Twitter: @dcatchpole.

More in Herald Business Journal

Snohomish County’s campaign to land the 797 takes off

Executive Dave Somers announced the formation of a task force to urge Boeing to build the plane here.

A decade after the recession, pain and fear linger

No matter how good things are now, it’s impossible to forget how the collapse affected people.

Panel: Motorcycle industry in deep trouble and needs help

They have failed to increase sales by making new riders out of women, minorities and millennials.

Costco rises as results display big-box retailer’s resiliency

Their model has worked in the face of heightened competition from online, brick-and-mortar peers.

For modern women, 98-year-old rejection letters still sting

In a stark new video, female Boeing engineers break the silence about past inopportunity.

Tax reform needs the public’s input on spending priorities

The GOP tax plan is a good idea, but the next step should give us a voice on how taxes are spent.

Commentary: GM, Boeing fight a war of words over Mars

Boeing is strongly signaling how crucial deep-space exploration is to its future.

Under cloud of ethics probes, Airbus CEO Enders to step down

He leaves in 2019 after 14 years. Meanwhile, aircraft division CEO Fabrice Bregier leaves in February.

$4.99 sandwich promotion irks some Subway business owners

Management insists that “most franchisees support the promotion.”

Most Read