There are fears for hundreds of jobs in Co Galway after US medical technology company Abbot informed staff their roles are in danger of redundancy following a review of the group’s organisational structure there.
Abbott has been in Ireland since 1946 and employs about 6,000 people across 10 sites in Clonmel, Cavan, Donegal, Longford, Galway, Sligo, Kilkenny and Dublin.
The group’s Galway facility, where about 400 people work, serves as the international hub for its rapid diagnostics business, which delivers more than two billion tests annually.
The company offers rapid tests for infectious diseases, such as Covid and HIV, and makes hand-held medical devices.
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Senior executives travelled to Galway from the company’s head office in Dublin on Monday and spent the week meeting individually with staff, who also received confirmation of the company’s plan to axe jobs by letter on Wednesday.
The letter said the company is proposing “changes to the organisational structure” within its rapid diagnostic division in Galway that seek to “realign and streamline business operations”.
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“Regrettably, under the new organisational structure proposed, your current role ... will no longer exist within the proposed new organisational structure,” the letter said. “We are therefore advising you that your role is at risk of redundancy.”
In a statement, the company said that, as of now, “fewer than 20 people in our diagnostics site in Galway were notified that their jobs are at risk”.
“Abbott continually evaluates its competitive position and makes changes that reflect the strategic needs of its business,” it said. There is no impact to other Abbott sites in Ireland from the current process, Abbott said.
The letter said the move is provisional “at this stage” and that company officials would be on hand to consult staff and hear their views.
“The company will continue to try to identify ways in which your redundancy might be avoided, and we will try to identify any alternative positions within the company that may be appropriate for you,” it said.
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Staff were encouraged to apply for suitable vacancies within the wider Abbott group. “Proposed changes such as those shared with you today are never made lightly and are the result of a thorough review and consideration by the Abbott leadership team,” the letter said.
A separate letter circulated to staff more widely said the changes stemmed from a reduction in sales volumes and a broader restructuring across the division.
A member of staff at the Galway facility, speaking on condition of anonymity, said company executives cited a 75 per cent fall in global sales in the group’s rapid diagnostic division as being to blame for the cuts.
“The slide that was presented to me said sales are down 75 per cent globally in the rapid diagnostics division since 2021, which is understandable since we were a big player in the Covid test arena,” he said.
The staff member said the mood was “sombre” on Friday. “I know this letter has been distributed to individuals across customer service, finance, procurement, logistics, basically all the functions that are in Galway,” he said.
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“We’re now in a 30-day window where we have to search for other internal roles. We’ve been told we’ll get the statutory redundancy of two weeks per year of service, which is capped at €600. Then we’ll get six week’s pay per year of service from Abbott.
“It’s extremely disappointing. I’ve worked extremely hard over the past number of years and have given a lot. It’s not the best time of year to be diving into the jobs market.”
Abbott missed analysts’ third-quarter revenue estimates on Wednesday, as weakness in its diagnostics and nutrition businesses outweighed demand for its medical devices.
The company had flagged volatility in its global business as it navigates a sharp decline in Covid testing demand, new US tariffs, and a freeze on foreign aid by US president Donald Trump’s administration.
