AbbVie's Allergan Aesthetics Unit to Cut 202 Jobs Amid Sales Decline

AbbVie's Allergan Aesthetics business is set to lay off 202 employees, marking a significant restructuring effort in response to recent sales challenges. The layoffs, disclosed in a California Worker Adjustment and Retraining Notification (WARN) Act notice, will take effect on July 22, 2025, primarily affecting remote workers and a small number of on-site staff at the company's Irvine, California headquarters.

Restructuring Amid Market Pressures

The decision to reduce workforce comes as Allergan's aesthetics portfolio faces declining revenues. In 2024, the unit experienced a 2.2% drop in sales, totaling $5.17 billion. The downward trend has continued into 2025, with first-quarter sales plummeting 11.7% to $1.1 billion.

A company spokesperson stated, "This action reflects a reorganization to better position Allergan Aesthetics for sustained leadership within the dynamic aesthetics industry." The move follows a previous round of layoffs in 2022, which saw 99 workers let go from the same location.

Product Performance and Strategic Adjustments

Allergan's flagship products, Botox and Juvederm, have been particularly affected, recording double-digit sales declines in the most recent earnings period. The company attributes part of this underperformance to issues with a new version of its aesthetics loyalty program, which providers found "too complex." In response, Allergan has reverted to its original loyalty program structure.

Despite these setbacks, AbbVie remains optimistic about its aesthetics franchise, projecting a "high single-digit compound annual revenue growth rate" through 2029. The company continues to innovate within its product line, having introduced Skinvive in 2023, a novel dermal filler with a unique skin-smoothing delivery mechanism.

Industry-Wide Trends and AbbVie's Overall Performance

The layoffs at Allergan Aesthetics reflect a broader trend of cost-cutting measures across the pharmaceutical industry. Other major players, including Bristol Myers Squibb and Teva, have announced similar workforce reductions in recent months.

While Allergan faces challenges, AbbVie's overall performance remains strong, particularly in its immunology segment. The company's Humira successors, Skyrizi and Rinvoq, have shown robust growth, driving immunology sales to $6.26 billion in the first quarter of 2025.

As the aesthetics market continues to evolve, Allergan's restructuring efforts aim to streamline operations and maintain its competitive edge in a rapidly changing industry landscape.