Biotechnology company Amgen (NASDAQ:AMGN) plans to remove about 450 employees, marking its second round of layoffs after it eliminated about 300 jobs in January, Reuters reported. The company is reducing costs as it continues to face high inflation and rising pressure on drug prices.
However, the latest job cuts represent a small proportion (less than 2%) of the company’s workforce. Amgen had nearly 25,200 employees in over 50 countries as of the end of December 2022. Amgen is a part of the growing list of U.S. companies that are reducing their employee count due to persistent economic headwinds.
“We made these changes to realign our expense base in the face of intensifying pressure on drug prices and high levels of inflation,” a company spokeswoman told Reuters.
Last month, Amgen’s guidance for 2023 failed to impress investors. The company’s outlook did not include any contribution from its proposed acquisition of Horizon Therapeutics (HZNP), announced in December 2022. Amgen is spending about $27.8 billion to acquire Horizon, a biopharma company developing treatments for rare, autoimmune, and severe inflammatory diseases.
Is Amgen Stock a Buy, Sell, or Hold?
Wall Street is sidelined on Amgen, with a Hold consensus rating based on five Buys, six Holds, and three Sells. The average AMGN stock price target of $252.50 suggests 7.6% upside potential. Shares have declined 10% year-to-date.
