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Catalent to lay off 400 workers

By Ethan Sandweiss

Posted November 30, 2022

Catalent is the second largest employer in Bloomington after Indiana University. The company grew rapidly during the pandemic before announcing cutbacks this summer. (Courtesy: Catalent/City of Bloomington)

Catalent Pharma Solutions is laying off about 400 employees at its Bloomington location.

According to an internally circulated email, both temporary and full-time employees will be affected, mostly in operations. Terminated employees will be notified by Friday.

A Catalent spokesperson based in the UK responded to a request for comment:

“During the pandemic, Catalent significantly increased its cost base to continue to meet the needs of our customers and deliver essential products, as well as to meet the needs specific to the pandemic. Given the current phase of the pandemic, the challenging global economic environment, and the need to ensure that Catalent continues to operate efficiently, we have made the difficult decision to reduce or delay some capital expenditure projects and also reduce the size of our workforce in certain areas.

“We appreciate every Catalent workers’ contributions and are offering severance and job transition support to all impacted employees.”

Catalent is the second largest employer in Bloomington after Indiana University, according to data from the state. Catalent acquired Bloomington’s Cook Pharmaceutical in 2017 for $950 million and increased the number of staff from 750 to 3,200 by early 2022.

The company distributed the Moderna and Johnson & Johnson COVID-19 vaccines in 2021, taking on 1,300 workers to handle the load.

Rapid growth during the pandemic factored into both Catalent’s plans and expectations of the City of Bloomington.

Mayor John Hamilton said in a statement that the city will continue working to bring jobs to Bloomington and connect people with those job opportunities.

"My administration will continue to work with the Bloomington Economic Development Corporation, (BEDC), the Greater Bloomington Chamber of Commerce, and Catalent and their employees to minimize the impact on those affected by these layoffs," Hamilton said.

The City Council gave Catalent tax breaks earlier this year, including a 90 percent relief on property tax for the next two decades. The decision was meant to encourage Catalent to go through with a $350 million expansion that was expected to add 1,000 jobs.

But cutbacks began this summer when Catalent laid off 204 temporary workers and increased shift lengths to 12 hours with mandatory overtime.

Other Catalent facilities in Texas and Maryland laid off significant numbers of workers earlier this month.