NORWICH – Last week, Norwich Pharma Services announced that organizational changes within the company’s North Norwich facility that will further improve customer service and enhance the company’s competitive advantage.
According to the company, changes include a 6 percent reduction in the Norwich overall headcount and significant investment in new equipment and technology.
Ric Festarini, Vice President of Human Resources at Norwich, said “The total number of positions affected by the changes amounts to 24, and the company will retain 362 employees after the said changes take effect.”
Festarini acknowledged that the organizational changes were “across the board,” meaning that all departments would see some movement of personnel throughout the company.
In a press release regarding the recent changes, the company states, “For more than 125 years, Norwich has built a strong reputation for dependable product supply and has become a recognized leader in full service contract development and manufacturing. More than 350 employees will continue to work at the Norwich manufacturing Site.”
"These changes were necessary to drive improved profitability and to further improve our competitive position. As we move forward, we remain confident in our competitiveness and ability to create value for our customers," said Terry Novak, President of Norwich Pharma Services.
Brian Reid, Vice President of Operations at Norwich said, “We are purchasing specialized equipment which allows for the production of more complex drug products, like fluid bed dryers, granulation systems, etc. In total, our expectation is to spend upwards of $15 million over the next year.”
In a effort to aid those effected through this time of transition at the facility, a generous separation package is planned, which includes separation payments based upon years of service, extended medical coverage post separation, outplacement and job search support, and related benefit program payments.
“Everything possible will be done to aid a smooth transition of those employees affected by this action,” the release stated.
Festarini noted that Norwich has been a long-standing member of the community for more than 126 years and is committed to continuing its position here as they move forward. He added that Norwich has a $21 million annual payroll which is applied directly into the local economy and prides itself on being an active participant in many civic and charitable organizations throughout the county.
Although some Chenango County residents are out of work, the company maintains its position that the organizational changes are for the greater good, and companies often shift labor and assets to project future growth.
“Although this truly is an unfortunate situation for those effected, we are not concerned about the viability of the company,” said Fesarini. “We are focusing or efforts on growing the company, increasing our capabilities and attracting new customers. We just want to set the record straight and inform our community that this isn’t a metter of outscouring positions or decreased production, and that every effort has been made to retain as many positions as possible while assisting those displaced.”