Shreveport Faces Job Losses as Dr. Reddy’s Laboratories Closes

News Summary

The closure of Dr. Reddy’s Laboratories in Shreveport, Louisiana, will affect approximately 109 employees. The facility, operational since 2008, is being sold to Jaguar Labs Holdings, causing uncertainty for workers about their future. The company has labeled the site as ‘non-strategic’ and layoffs are expected starting March 14, 2025. The local community is bracing for the impact of this significant job loss amidst an unclear plan from the new owners.

Shreveport Faces Job Losses as Dr. Reddy’s Laboratories Closes

Shreveport, Louisiana, is gearing up for some tough times ahead as Dr. Reddy’s Laboratories has announced plans to close its facility in the city after selling it to Jaguar Labs Holdings, LLC. The news, which started making waves in town recently, was formally shared on January 7, 2024, through an SEC filing. Unfortunately, this means significant changes—and challenges—for the approximately 109 employees who have been keeping the facility running.

From Boots/BASF to Dr. Reddy’s

Dr. Reddy’s Laboratories, an India-based pharmaceutical giant, moved into Shreveport back in 2008, taking over a former Boots/BASF plant. Since then, the facility, located at 8800 Line Avenue, has been a cornerstone of pharmaceutical production in the area. However, the recent decision refers to this location as “non-strategic”, resulting from the company’s evaluations of its product pipeline, which reported no future prospects.

What Happens Next?

Employees at Dr. Reddy’s received a notice indicating that the facility will shut down permanently, with separations expected to occur during a 14-day period starting March 14, 2025. Many workers have been part of this operation for decades, with some clocking in over 40 years on the job. It’s certainly an emotional time for many, as they face uncertainty about their futures.

A Staggering Decision

Interestingly, while employees only learned about the sale on January 7, reports suggest that Dr. Reddy’s had been considering this move for several months prior. In a somewhat confusing twist, the company’s U.S. division website doesn’t mention the closure or the sale, instead presenting an optimistic outlook for its product pipeline. This adds a layer of uncertainty, not just for employees but also for the community that counts on these jobs.

Sale Details and Local Impact

The terms of the sale indicated that Dr. Reddy’s received what they termed as “consideration” of $1. This legal language doesn’t reflect the actual selling price, which was notably reported at about $29.49 million during the SEC filing. Despite the figures involved, it’s the human impact that looms largest in this scenario.

Loss of Jobs

A historical context adds weight to the situation; back when Dr. Reddy’s first acquired the facility, around 150 employees made the transition to their ownership. As the end of this chapter approaches, the 109 current employees face an uncertain future. The Louisiana Workforce Commission has received a preliminary Worker Adjustment and Retraining Notification (WARN) report concerning these layoffs, though it doesn’t clarify issues like severance packages or what might happen to jobs under the new ownership.

What About the New Owners?

It has been revealed that the new owner behind the acquisition will be The Ten Oaks Group, based in Charlotte, North Carolina. This company is known for its corporate divestitures, but information about their plans for the Shreveport facility remains scarce. Local contacts and members of LaWorks have reached out for clarity, but, as of now, attempts to contact the new owners for additional details have been unsuccessful.

As Shreveport watches the situation unfold, the community stands by those who are now left wondering about their careers and futures. This closure marks not just the end of a facility but the beginning of a new, uncertain chapter for many who have dedicated decades of their lives to their work at Dr. Reddy’s.