Mass lay-offs in Hobart pharmaceutical plant

Mallinckrodt Pharmaceuticals, one of the largest employers in Delaware county, will eliminate approximately 15 percent of the positions at their manufacturing and distribution plant in Hobart.

“Based on the ongoing evaluation of resources in Hobart, including recent changes in long-term demand, operational improvements and a change in shift schedules, we are taking action to realign and reshape our resources as part of our effort to position the Hobart Plant to be a top-performing manufacturing site,” Media Relations Manager at Mallinckrodt Pharmaceuticals Lynn Phillips said. “The actions we are taking will result in an elimination of positions that will impact the workforce at our Hobart Plant.”

Affected employees will be notified this week, Phillips said, and most will leave the company by early July. Those laid-off will be given severance benefits that include outplacement services. 

Sources say 85 to 100 jobs will be cut. 

Phillips said the company “determined the need” for the lay-offs following the June 9 deadline for a Voluntary Separation Program. Mallinckrodt Pharmaceuticals spun out from Covidien, another large-scale healthcare product company, in June of 2013.

We were unable to reach county and village officials for comments as of press time.