Bioengineering announces a reduction of 20 employees in Switzerland as part of an ongoing restructuring

March, 2020

Bioengineering announces a reduction of 20 employees in Switzerland as part of an ongoing restructuring

For the last 2 years, Bioengineering has recognized the need to adapt to a changing market in order to retain its position as one of the leading bioreactor and fermentation solutions provider to some of the world’s most renowned companies globally in the biotech, pharmaceutical and food processing industries.

Increasing cost pressure from pharmaceutical manufacturers who endeavour to increase access to life-saving medications, and the entry of disruptive single-use technology in the pilot-scale cell culture segment have taken their toll on the company’s profit margins.

In response, Bioengineering’s management and board appointed a CEO with a strong operations background who initiated a company-wide review of the organizational structure, streamlined processes, improved productivity and brought on experienced consultants who have supported Bioengineering position itself for future growth. Bioengineering continues to train and support the development of a joint venture, Swiss Biohygienic Equipment based in Bangladesh to diversify and expand business in the hygienic water segment, not previously served.

The decision to reduce its workforce came after projects sold in the previous year were delayed, and the more recent stop of ongoing activities in COVID-19 affected regions of China.

While Bioengineering fully expects to realize the value of its sales pipeline as well as the delayed projects, this will take longer than initially expected. The company has therefore decided to take immediate steps to appropriately address business realities whilst best preparing itself to meet future demand. The company’s 48 years of experience in engineering and hygienic design will continue to be led by the headquarters in Switzerland, with supporting activities transferred closer to our customer base.

The reduction of 20 employees has primarily affected manufacturing operations, duplicate roles or those which can be temporarily filled by external partners when regular production resumes.

Ongoing projects remain unaffected by this decision.

Marc Bachmann, CEO said, “Bioengineering is a responsible employer and the reduction in our workforce, including two positions on the management team, was a decision that was not taken without considering every alternative first. We recognize it will have a significant impact on our dedicated colleagues and I am grateful to them for their commitment and valuable contributions, particularly over the past few years. We will work closely with those affected by the decision to place them in new jobs in the immediate future.

We remain committed to our operational strategy of consolidating high-value know-how in Switzerland, a focus on limited-competition opportunities, as well as fast-growing innovative fields that closely align with our core expertise and capabilities. These necessary steps ensure the availability of sufficient capital to focus on these priorities.”

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