Layoffs at P&G catch officials off guard

MASON — The decision by Warner Chilcott to lay off 163 employees at the Procter & Gamble facility in Mason surprised local economic development officials.

The Rockaway, N.J.-based company notified the Ohio Department of Job & Family Services that layoffs will begin May 31 and conclude by Aug. 31. The notice indicated the job losses were “pursuant to organizational and operational changes.”

Kimm Coyner, Warren County’s economic development director, said she and officials with the Cincinnati USA Partnership have been working with a consultant for Warner Chilcott in locating a new facility for its pharmaceutical employees for the next two to three years.

She said they had narrowed the search to two locations in Warren County The consultant for the company had been in touch with the Partnership less than two weeks ago and no hint of departure was mentioned, she said.

“We were as surprised as everybody else when the decision came out,” Coyner said. “We weren’t given any advanced notice and or reason for why that decision was turned around.”

Chris Kemper, a spokesman for the Cincinnati Partnership, said his organization also expected the company “would stay in the region.”

Warner Chilcott agreed to purchase the P&G pharmaceutical division last August for $3.1 billion. The purchase of P&G’s global branded prescription pharmaceuticals like Actonel, along with P&G manufacturing facilities in Puerto Rico and Germany, was consummated in October. When the deal closed, approximately 1,900 employees worldwide joined Warner Chilcott, according to a company release.

The Warner Chilcott employee were supposed to work at the P&G facility until they were moved to a new location. A notification posted on the OJFS Web site Monday, March 22, indicates that some employees at the Mason facility will be offered jobs elsewhere.

Employees listed in the layoff notice include several management positions, scientists and researchers among others.

Karen Whittamore, director of Workforce One of Warren County, said this layoff, with the high caliber of skill sets the employees possess, presents a “challenge” in helping them find new jobs. She said there are companies in Butler County like Amylin Pharmaceuticals who may be able to hire some of these people. Also, there is the option of teaching in one of the many higher education settings in the area, she said.

“Normally we say to people, update your skills,” she said. “Well, these are very, very highly skilled individuals.”

Warner Chilcott officials could not be reached for comment.

Tom Millikin, a spokesman for P&G, said the company was notified last week. He said the Mason facility still houses more than 1,500 P&G employees from other divisions like oral, cold, digestive and pet care.

“This departure will have a minimal impact on the Mason facility,” Millikin said.

Mason City Manager Eric Hansen said it is hard to accurately quantify the financial impact on the city, because the takeover by Warner Chilcott just happened. He said income tax revenues may go down by about $100,000 to $200,000, but since 240 Iams and Eukanuba pet food employees moved in late last year, “the net impact to the city will likely be zero.”

Contact this reporter at (513) 696-4525 or dcallahan@coxohio.com.

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