Company That Malloy Gave $51M in State Money to Lays Off 210 EmployeesMarch 15, 2017
Alexion Pharmaceuticals, a Malloy "First Five" recipient of loans and tax benefits, laid off seven percent of its workforce, according to the New Haven Register.
More trouble for businesses in the state under Gov. Dan Malloy (D-Conn.): Alexion Pharmaceuticals, a recipient of state loans, grants, and tax credits under Malloy’s “First Five” program, will lay off 210 employees in “coming weeks.”
The layoffs represent about 7 percent of Alexion’s 3,000 person workforce, said Kim Diamond, a company spokeswoman. The company, which makes drugs to treat rare diseases, announced the layoffs in an internal memo that was sent out Monday.
…When the company announced in 2012 that it was returning to New Haven, Alexion accepted incentives from the state as part of its First Five economic development program. First Five provides a package of incentives for participating companies that bring at lease 200 new full-time jobs to Connecticut.
The $51 million state deal with Alexion involves a 10-year loan of $20 million at a rate of 1 percent, with loan forgiveness of $16 million to $20 million if the jobs numbers are met. It also included a $6 million grant for lab construction and equipment as well as an Urban and Industrial Sites Reinvestment Tax Credit of up to $25 million.
A Malloy spokesman defended the layoffs as “ebbs and flows,” but it continues a troubling trend from major businesses in the state:
- General Electric left Hartford for Boston in January 2016, and took with it “hundreds of high-paying jobs,” as reported by the Hartford Courant at the time.
- Rumors of Aetna’s departure from Hartford have plagued the capital city for the better part of a year.
- The Tax Foundation just put Connecticut’s “state business tax climate” in the bottom 10 of the entire country, at #43 of 50.
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