MDS Pharma Services cutting jobs in Lincoln

By The Lincoln Journal Star
Friday, Jul 18, 2008 - 02:55:49 pm CDT

MDS Pharma Services said Friday it is cutting jobs in Lincoln, but would not disclose the number.

Spokeswoman Charlene McGrady confirmed the reductions in Lincoln were among 210 positions MDS Inc. is eliminating across two business divisions.

Those losing their jobs will be given severance in accordance with company policies, McGrady said, but she did not disclose terms.

MDS Pharma Services employs hundreds of employees in Lincoln in pharmaceutical research, testing and development. MDS Inc., which owns MDS Pharma Services, is a Canadian company.

The Lincoln operation of MDS Pharma Services was formerly known as Harris Laboratories, which MDS acquired in 1996.

McGrady would not disclose the number of employees in Lincoln, before or after the cuts, but as recently as 2007 there were 600 working here.

The employees let go signed a standard severance agreement stating that the terms are confidential, she said.

MDS is taking the action to improve profitability to respond to softening demand for high-end instruments at MDS Analytical Technologies and delays in achieving targeted profitability improvements at MDS Pharma Services, the company said.

McGrady would not say whether the jobs might be refilled in the future.

“We continually evaluate our global footprint, rightsizing in response to market dynamics and customer needs,” she wrote in an email. “We will continue to to fill critical roles based on business and client needs. “

These restructuring actions are expected to yield annual pre-tax savings of approximately $20 million,

Pre-tax restructuring charges agsint earnings are anticipated to be approximately $18 million with the majority of the charges recorded in the third quarter this year, MDS said.

The company also expects to record a related asset impairment charge of approximately $10 million related to its MDS Pharma Services Montreal site. The expected after-tax amount of restructuring and asset impairment charges will reduce net income and basic earnings per share for fiscal 2008 by approximately $20 million and $0.16, respectively, MDS said.