Planned Expansion Turns Into Downsizing At Cody Pharmaceutical Production Facility
Just a few months ago Cody Laboratories was gearing for a $50.5 million expansion that would add 57 new jobs. But in April, it announced the expansion was going to be postponed because funding never came through. Now the facility, owned by the Lannett Company, is facing close to 50 layoffs. That's more than a third of the staff.
The Lannett Company said in a press release it’s part of a restructuring and cost reduction plan for Cody Laboratories.
Tina Hoebelheinrich, the Executive Director of Cody Country Chamber of Commerce, said the dramatic turnover from a possible expansion to downsizing most likely has to do with changing of leadership at the pharmaceutical company.
“That change at the top trickled down in a lot of diff ways and they're still changing focus or restructuring,” said Hoebelheinrich.
She added that with the opioid crisis, pharmaceutical companies are being cautious.
“We’re talking about a country in crisis [with] lots of people suffering from addiction and I think we have to find our way through this and I don't think pharmaceutical companies know what to do,” said Hoebelheinrich.
The Cody Laboratories website does list the facility produces several opioids.
Hoebelheinrich said she hopes Cody Laboratories remains open and that the Country Chamber of Commerce will try to do everything it can to help. The layoffs will be in place by December.