Some pharmacy jobs in Rhode Island will soon be eliminated.
GeoPharma Inc., a biopharmaceutical company, recently announced that it plans to cut jobs, consolidate distribution operations and lower SG&A. The company is hoping these moves will help restructuring efforts and improve financial performance, according to an article by RTTNews.
Aside from GeoPharma closing a facility in Rhode Island, the company also has already closed a warehouse facility located in Texas.
“The company said it would channelize the Texas account to a Nevada facility, while; Rhode Island accounts will be maintained in Pennsylvania,” the article notes. “Additionally, the company said its officers would take immediate pay reduction for the foreseeable future.
“Presently, the company is negotiating its shipping contracts as well as immediate discontinuation of any business expenditures with no reconcilable sales amount or other net benefit,” the article continues. “GeoPharma also stated that it is evaluating its debt structure to figure out settling its prior obligations, replacement of current debt and refinancing.”
GeoPharma hopes the cutbacks will help the company see savings of $1.1 million during Q4.
The job cuts will add to Rhode Island’s faltering economy. During November 2008, the state had a total non-farm employment of 471,800 workers, according to the United States Department of Labor Bureau of Labor Statistics. This is down from 475,800 workers during October 2008 and a 3.7 percent decrease from last year.
Rhode Island had an unemployment rate of 9.3 percent during November, the same as October, but higher than the national unemployment rate of 6.7 percent.