AstraZeneca announced today that research and development will no longer be carried out at the Alderley Park site, which today houses around 2,900 employees.
As a result of these major changes, 1,600 research and development roles will be relocated from Alderley Park by 2016, with the significant majority going to a new global R&D centre and corporate headquarters in Cambridge and the remainder will relocate to the company's nearby Macclesfield facility or sites overseas.
AstraZeneca have stated that at least 700 non-R&D roles are expected to remain at Alderley Park.
As part of the restructuring AstraZeneca said it will invest around £330 million to establish a purpose-built site in Cambridge where they will consolidate their UK research and development activities along with some other corporate and global functions.
The proposed changes are estimated to result in an overall headcount reduction of about 700 in the UK over the 2013-2016 period. It is unclear at this stage exactly how much of that reduction will come from staff at Alderley Park.
Approximately 300 further roles may be relocated outside the UK. Today, AstraZeneca employs around 6,700 people in the UK.
Pascal Soriot, Chief Executive Officer, AstraZeneca said: "I recognise that our plans will have a significant impact on many of our people at our sites in Cheshire and London and the surrounding communities. We are fully committed to treating all our employees with respect and fairness as we navigate this period of change.
"AstraZeneca remains strongly committed to the North West of England. We are keen to work with central and local government, as well as the business community in the region, to ensure that all practical solutions for the future of Alderley Park are considered in order to support the local economy over the long term."
AstraZeneca will continue to employ around 3,000 people in the North West, at Alderley Park, its Macclesfield manufacturing site and the MedImmune vaccine manufacturing facility in Speke.
Unite, Britain's biggest union, has accused AstraZeneca of creating a skills crisis in the north west by draining the region of highly skilled research and development jobs in the middle of an economic downturn.
Unite national officer Linda McCulloch said: "AstraZeneca's decision to relocate over a thousand jobs to Cambridge is a massive blow for the north west. The company is creating a skills crisis for the local economy.
"After 40 years of success and hundreds of millions of pounds of investment, we are at a loss as to why AstraZeneca is now pulling out of Alderley Park. The region desperately needs this highly skilled workforce - they make a huge contribution to the economy and to the community.
"Staff will be shell-shocked by this announcement. Skilled scientific jobs are in short supply and there are many families based around Alderley Park with deep roots in the community. It is going to be a real struggle to relocate families hundreds of miles away to Cambridge.
"Unite will be meeting with the company to demand that AstraZeneca rethinks this decision and looks at alternatives to relocation. The union will be making it a priority to contact local MPs to urge them to intervene. The government has a clear duty to act and encourage AstraZeneca to continue to have a strong presence in the north west. In the middle of a economic crisis this government should do everything possible to stop AstraZeneca from turning its back on the north west."
Councillor Michael Jones, Leader Cheshire East Council, said today: "UK Plc should support AstraZeneca through its restructuring and Cheshire East Council will work hard to ensure the future sustainability of their major centres in Alderley Park and Hurdsfield, Macclesfield.
"We will now need to accelerate our emerging plans for a new Bio Science Park and Incubator, as part of drive to foster growth of the Life Science sector in the region and maximise the wider potential of the site for future development.
"I am very pleased to say that George Osborne, Chancellor and local constituency MP for Tatton, has personally fought very hard to retain a strong position for AZ in the UK and I believe without his direct involvement the announcements today would have meant a complete closure of Alderley Park.
"I believe that with the collective efforts of the North West scientific community, life sciences business, Cheshire East Council and Government, that we can build a sustainable and vibrant future for our science sector.
"We have all the ingredients – we just need the backing and initial up-front investment from Government through a Task Force led by the Minister for Universities and Science David Willetts MP and AstraZeneca.
"We must accept, adapt and respond to these types of announcements and look to the future and the potential opportunities it may create."
George Osborne MP added "While I recognise AstraZeneca's commitment to science in the UK and the investment they are making in Macclesfield and Cambridge, this is obviously very difficult news for people directly affected by the decisions around Alderley Park.
"I have worked hard with AstraZeneca over the last few weeks to make sure that a substantial number of jobs are kept there and will work closely with Cheshire East Council and the government task force we are creating to bring new companies to the site. We are all determined that Alderley Park shall remain a success story and at the heart of our local community."
In February 2012 AstraZeneca announced 7,300 job cuts by the end of 2014, which is expected to deliver annual savings of $1.6 billion by the end of 2014.
Comments
Here's what readers have had to say so far. Why not add your thoughts below.
Wonder if CEC will still regard AZ as the Borough's leading private employer?
It is also bad news for the property market so we don’t need a rush to provide more housing; over supply could lead to "depressed house values".
How many examples of the real world do CEC need before changing their proposed Development Strategy? Would someone suffer too much of “loss of face” if CEC simply turned round, stood up to those who have presented ideas for development on Green Belt land and simply said “NO”?!
Councillor Michael Jones, Leader Cheshire East Council, said today...
"I am very pleased to say that George Osborne, Chancellor and local constituency MP for Tatton, has personally fought very hard to retain a strong position for AZ in the UK and I believe without his direct involvement the announcements today would have meant a complete closure of Alderley Park."
And yet, knowing this (presumably due diligence was done to their usual standards), CEC only a few weeks ago loaned £1m of Council Tax payers money to A-Z in a speculative venture with no fixed repayment date. This really is beyond belief.