Dive Brief:
- Fresenius Medical Care will lay off more than 300 people as part of a planned closure of a manufacturing plant in Concord, California.
- The cuts will begin in August and continue through mid-2025, according to a Worker Adjustment and Retraining Notification (WARN) filing with California.
- CEO Helen Giza told investors on a May 7 call that the company is moving production from California to Mexico to reduce costs and improve margins.
Dive Insight:
Fresenius Medical Care, which makes dialysis equipment and operates dialysis centers around the world, is looking to tighten spending in its first year as an independent company. The firm was separated from parent company Fresenius in November, with Fresenius keeping a 32% stake.
Giza told investors that “several initiatives are underway” to optimize Fresenius Medical Care’s manufacturing footprint and supply chain.
The company will move all dialysis manufacturing operations from Concord, California, to a facility in Reynosa, Mexico, Fresenius Medical Care wrote in an emailed statement on Wednesday. It plans to end the employment of all people who work at the Concord location, except for employees who work remotely or who are transferred within the company, according to a WARN notice acquired by MedTech Dive.
The WARN filing affects 309 people, according to California's Employment Development Department database. The listed positions include assemblers, manufacturing technicians, engineers, warehouse associates and quality control workers.
Additionally, Fresenius Medical Care wrote that it is consolidating certain engineering activities in the Europe, Middle East and Africa region. The company plans to offer eligible employees severance packages and outplacement services.
