BD Biosciences employee here trying to know what to expect at spin off. Were Embecta employees laid off? Do Embecta employees still have same BD benefits?
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When embecta spun off, there were TSA/LSA (service agreements) lasting for two years to give ample time to "stand up" as its own company (policies, staff, ERP, supply network, etc.). BD legacy employees weren't allowed to apply back to BD for two years and were promised bonuses for staying on board embecta.
Fast forward two years and things are a mess...
were there significant layoffs at BD/embecta before the split (as part of the split)?
Many were not allowed to apply for positions at BD. They were locked into embecta, some were promotions that ended up never happening. A lot were let go a lot left on their own. Now as its own company, it’s doing terribly. The stock is basically worth nothing and most likely it will not survive.
thanks for the comment about Vyaire - didn't know about that. looks like dark times ahead for all of us in Life Sciences, especially considering the current biotech job market
embecta stocks have not been doing well at all. So it's not headed to a healthy direction. But if you look back further at Vyaire Medical (the respiratory business BD spun off in 2018), almost everyone was laid off years ago and the company filed bankruptcy last year or year before.
The spinoff will be it's own company down the line, so eventually, no extra funding from other units will be available to help prop it up if it ever needs more cash.
Embecta is an independent company from BD. The benefits structure may have remained the same for ease of transition, but they're not BD benefits. A spinoff creates 2 or more independent companies whose main purpose is to help them concentrate on core abilities without being hamstring by the mothership. In many cases,at the onset the parent company may retain a certain stake in the new company but then it slowly divests itself within an agreed upon timeline as the new company settles into its new role as an independent entity.
Not sure how it all worked. I do know in July shares were down 70% and there was talk of sale. Not sure what happened.