Charles River Laboratories is cutting around 3% of its total workforce in “response to current trends,” a company spokesperson told Endpoints News in an email.
The Wilmington, MA-based company is laying off staff as well as “streamlining” its cost structure to “optimize its footprint, be more effective in supporting clients, and drive greater operating efficiencies, ” the spokesperson added.
As of Dec. 31 2023, the company had around 21,800 employees globally, and a 3% cut could mean that around 650 staffers would be laid off.
When asked which part of the business is most affected, the spokesperson said that “reductions occurred across the organization and were influenced by current industry demand and client needs.” Last month, the company laid off 13 employees at its site in Frederick, MD, according to a WARN notice.
Charles River’s revenue slipped by 3.2% in the second quarter of this year. In particular, its discovery and safety assessment tools business revenue dropped 5.4%. The company offers a range of other services, including contract manufacturing, cell sourcing and biologics testing.
The company noted that pharma clients are overall pulling back on their R&D spending, which has a negative impact on CDMOs and manufacturers. Many pharma companies are shrinking their pipelines to cut costs, a trend Charles River CEO James Foster predicts will continue into next year.