Takeda Pharmaceutical Co. is pushing ahead with job cuts across its global operations as Japan’s largest drugmaker by sales grapples with declining profits and a sagging stock price.
The company plans to eliminate about 80 positions in Massachusetts by March, adding to previously announced cuts of 800 jobs in the state and 300 in California. In Japan, Takeda expanded its voluntary buyout program to include employees with just three years of service, departing from its traditional focus on veteran staff.
The restructuring, backed by a 140 billion yen ($930 million) investment, comes as Takeda projects a 60% plunge in net profit to 58 billion yen for the fiscal year ending March 2025. The company’s domestic revenue accounts for merely 10% of its 4.26 trillion yen total, hit by generic competition for its blood pressure medication.
The drugmaker’s performance has raised eyebrows among investors, with return on equity dropping to 2.11% in the recent financial year. Meanwhile, CEO Christophe Weber’s 2.08 billion yen compensation package has drawn criticism from shareholders and alumni, who argue that relying solely on workforce reduction might trigger an exodus of talent.
Takeda’s stock closed at 4,255 yen on Tuesday, with its market value now trailing behind domestic rivals Chugai Pharmaceutical and Daiichi Sankyo.
