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Roche business planning includes New Jersey research unit closure

The Nutley research facility for the Swiss drug company Roche will soon be closing its doors. When doing its business planning, Roche decided to consolidate certain portions of its operations.

The research unit in Nutley, which has been home to Roche's Inflammation Discovery and Transitional Area, will be consolidated into operations in both Switzerland and Germany. Roche currently has two other research units in New Jersey. So far, those operations remain unaffected.

According to Roche, the Inflammation Discovery and Transitional Area research unit will continue to operate through the end of 2013, and the final closure of the facility will not happen until 2015. This fact is proof positive that winding down even a portion of a business can be complicated and time consuming. Roche says this closure will help stabilize its research costs. For those losing their jobs, the news means they have a little more than a year to find new employment.

Making the decision to shut down a portion of a business can involve several factors. In most cases, companies make an attempt to foresee every benefit and consequence. Roche's decision to consolidate is estimated to create around 80 more jobs in Switzerland and Germany, but the closing of the New Jersey site will result in a reduction of approximately 1,000 Roche employees. That means there will be around 400 Roche employees still working in New Jersey.

Despite its international status, Roche will be required to remain in compliance with New Jersey law with regard to the shut down -- as would any entity. Thankfully, businesses don't have to navigate planning processes alone. And typically, it's only through careful, thoughtful business planning that these types of business decisions go smoothly.

Source:, "Swiss drugmaker Roche plans to shut research unit in US," June 26, 2012

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