Drug company closing area operations, 700 could lose jobs

Drug company Watson Pharmaceuticals announced today it will be closing three properties, including a laboratory on West Street that employs about 60 people.

[DonC]

It should come as no surprise as, yet, another company decides to move operations elsewhere. The cost of doing business in Connecticut as well as in Dutchess county has increased to a point that it forces companies to make the financial decision to leave. While this company has not specifically stated their reason to move, I'm sure the tax burden on them played a key role in the decision.

[James H]

I am wondering where these jobs are going to?

India & Florida - Where the labor costs are much lower.

The big winner here is Mannkind & Boehringer Ingelheim because there will be a supply of new talent avaialble in Marketplace

[1JAWHAWKER]

Another sign that ICE is at work.

[woww]

this is called outsourcing

[sue]

lets see, at least these people can go work at mcdonalds now, but all those jobs are taken by you know who

[just candid]

Many Pharmaceutical Cos are now moving some or much of their operations to India or China.

[wwjd]

I'd be interested in what percentage went to India of the three locations mentioned, the majority I'm sure.

[fred d]

Connecticut and New York are hostile to job creators.Vote out the anti job creator democrate legislature and the jobs may return.Your job may be next.

[resident]

More jobs to go overseas... probably India will get the majority of those jobs.

Just another step towards eventual economic collapse.

I wonder how these folks will be able to support their families.

[north street norm]

I'm sure you'll blame the im'grints as you rush off to Wal Mart.

[CongressSoldtoLo bbyists]

Does outsourcing equal safety when it comes to manufactured drugs or food .

The Chinese have manufactured lead based toys for years. Do you trust that they can manufacture safe drugs or food.

Wait - till hundreds die from unsafe drugs manufactured & food in these foreign countries.

Let me tell you man - tainted toys are the least of our problems when it comes to China.

Next time when you go to Costco - See where the frozen Shrimp comes from. I tell you where the same river where those toys are also manufactured.

[Michael M]

Another example of a publically traded company feeling pressure from Wall Street & shareholders to produce better financial results.

If Watson was a private company, there would be no layoffs.

[Ed from danbury]

A friend of mine lost her job recently...Worked for a name brand product company...she flew to india to see where they will be producing some of your household products. Holy crap...She said the place was absolutely filthy, the people working there dirty, and she told her boss she couldn't go back there again because it turned her stomach and she couldn't believe in her product any more... They "outsourced" her department shortly thereafter and believe me...You won't want to put these products anywhere near your body...eww...

[Apocalypse]

At what point do we implode in on ourselves and realize that the enemy within is a greater threat to our quality of life than the enemies outside our borders. Our own so-called elected officials are have created the environment that now forces private enterprise to leave inorder to survive. When the public sector has no one left in the private sector to tax and fund it's rampant spending addictions we will all be forced to leave the very homesteads we all hold so dear. People, wake up and stop defending the status quo politicians who are tearing the very fiber of our lives.

[numb3rs]

Michael M wrote:

Another example of a publically traded company feeling pressure from Wall Street & shareholders to produce better financial results.
If Watson was a private company, there would be no layoffs.

If it weren't for Wall Street & shareholders there wouldn't be a Watson Pharmaceuticals.

[Buzzworthy]

numb3rs wrote:

<quoted text>
If it weren't for Wall Street & shareholders there wouldn't be a Watson Pharmaceuticals.

Watson is a California based company. It shouldn't surprise anyone that they would be consolidating jobs from the former Schein Pharmaceuticals which they purchased, to plants elsewhere in lower cost states.

Not only are property taxes high in Danbury in comparison to other states, wages are high, and CT has an income tax. Should the company be uncompetitive simply to continue employing their workers when there are better alternatives?

You need to look no further the the American auto industry to see what worker concessions and high costs will do. The American auto industry is doomed unless they can de-unionize, run-off retirees and high wage earners, amend the benefits schedules and move to lower cost areas.

[Jay]

A hard pill to swallow. I am somewhat suprised that the company is consolidating back to California. Their labor laws are more stringent than other states. I also wonder if Watson was given a tax incentive.

[MONEY-MONEY-MONE Y]

It's 'The Bottom Line"
Wall St. Cry Babies, Greed,
Another Bottle Of $100.00 Wine,
And One More Summer House For The
CEO. Wake Up America!!!!!!!!!!

[numb3rs]

Buzzworthy wrote:

<quoted text>Watson is a California based company. It shouldn't surprise anyone that they would be consolidating jobs from the former Schein Pharmaceuticals which they purchased, to plants elsewhere in lower cost states.
Not only are property taxes high in Danbury in comparison to other states, wages are high, and CT has an income tax. Should the company be uncompetitive simply to continue employing their workers when there are better alternatives?
You need to look no further the the American auto industry to see what worker concessions and high costs will do. The American auto industry is doomed unless they can de-unionize, run-off retirees and high wage earners, amend the benefits schedules and move to lower cost areas.

Not sure why this was addressed to me,(my original point was that the company wouldn't exist without the shareholders my respondant so loathed) but...

It really shouldn't matter where the headquarters are (unless you are arguing that hq close to operations would make them less likely to move because of community ill will - but still, shouldn't have much/any bearing).

You mix taxes and unions in your argument which is a bit confusing. It becomes even more confusing when you consider that Watson has no unionized workforce. I agree that CT/NY tax situation and wages would be unfavorable for a company like Watson, but unionization and worker benefits (ex-salary) probably had nothing to do with this move.

[RBlue]

Apocalypse wrote:

When the public sector has no one left in the private sector to tax and fund it's rampant spending addictions we will all be forced to leave the very homesteads we all hold so dear.

Dude- the homestead is only a distant memory to some of us, and a totally foreign thing to most. We left the homesteads long ago....those days are already over.