Umbrella Companies | Will the Pfizer shutdown affect umbrella company contractors?

Will the Pfizer shutdown affect umbrella company contractors?

Pfizer, the world’s largest drugmaker, announced last week that it intends to shut down its Research and Development facility in Sandwich within the next 2 years.

The news dealt a massive blow to the 2,400 employees at the facility as well as the scientific research sector in the UK. The news could also deal a blow to the many contractors who operate in this sector through umbrella companies. Most of the workers now face redundancy over the coming 18 – 24 months, although Pfizer says it will try to transfer some positions to other sites as well as building partnerships that can utilise the site facilities.

Pfizer has decided to stop research into the allergy and respiratory areas that are based at the Sandwich site and concentrate on creating a more innovative R&D engine. The head of the site, Ruth McKernan, stressed that the decision to close was no reflection on the workforce, the site or the operating environment.

Lawrence Levy, chairman of the REC’s Pharmaceutical and Scientific division said this was a worrying turn of events for the scientific and research community and could have an adverse effect on the entire economy. Drug R&D should be kept in the UK so that we can retain the top talent necessary to facilitate growth in the long term and the resultant sustainable economy.

He also expressed concerns that countries abroad might see the closure as an indication of a fragile economy. The government has promised to ring-fence the budget for scientific research and now is the time to show it will continue its support for the industry.

Specialist recruiters will have a huge role to play in keeping Pfizer’s highly-skilled workers in employment. The sector has been showing positive signs of growth recently and REC members should be on hand to advise these talented individuals on how they can get back into employment as quickly as possible.

The secretary of state for business, Vince Cable, expressed his disappointment at the news but added that Pfizer had made it clear that the decision was part of its global change programme and should not be viewed as a judgement against the UK as a pharmaceutical research location.

© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.

Image: Abandonded Umbrella No.1 by The James Kendall Of The Pistoleers

Scroll to Top