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Charles River Laboratories International Inc. will lay off 4 percent of its staff in a move the company said will save $40 million per year.
The Wilmington-based life sciences tools and services company cited “continuing softness in demand from our global pharmaceutical clients” as the reason for the cuts, which were announced as a part of the company’s third quarter earnings release.
Charles River has a total headcount of approximately 8,500, with about 1200 workers in Massachusetts, according to Boston Business Journal research. Charles River has not yet returned a call to confirm the total headcount, but if the numbers are the most recent, the company will be cutting about 340 positions.
The company also announced other cost-saving measures such as closure of a leased facility in Quebec, Canada, and consolidation of an operation in Michigan with a larger facility in North Carolina. Charles River said it expects to take a one-time restructuring charge of approximately $15 million.
Charles River (NYSE: CRL), best known for providing mice for use in early stage drug research, said net sales were $276.1 million, a decline of 7.2 percent from $297.5 million in the third quarter of 2009.
Profits were hit hard — the company reported net income of $28.4 million for the third quarter of 2010, compared to $42.6 million for the same period in 2009, a decrease of 33.4 percent.
“Our third-quarter results continue to reflect the challenges the global pharmaceutical industry is facing,” said CEO James C. Foster in a statement. “The actions we are taking to appropriately align our infrastructure to current demand will enable us to profitably meet the challenges we are facing, and position us for improved profitability when demand improves.”
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