AbbVie's Allergan Cuts Over 200 Jobs Following Marketing Misstep and Industry Pressures

AbbVie's aesthetics division, Allergan, is set to lay off 202 employees at its Irvine, California site, according to a recent Worker Adjustment and Retraining Notification update. The workforce reduction, scheduled to take effect on July 22, comes in the wake of a botched marketing campaign and broader industry challenges.

Marketing Misfire and Sales Decline

Allergan's revamped loyalty program, All\u0113, launched in October 2024, failed to deliver expected results. The program, designed to incentivize patients to seek more frequent treatments for products like Botox and Juv\u00e9derm, proved too complex for many providers to integrate into their practices. This misstep led to negative impacts on market share and inventory levels.

Carrie Strom, president of Global Allergan Aesthetics, acknowledged the program's shortcomings during AbbVie's fourth-quarter earnings report. The company has since reverted to its original loyalty program, which has reportedly been well-received by providers.

The marketing blunder contributed to a 4.4% year-on-year decline in AbbVie's aesthetics sales, which fell to $1.3 billion in Q4 2024. U.S. sales were particularly affected, dropping 5% year-on-year to $839 million.

Broader Economic and Market Pressures

Beyond the marketing misstep, Allergan faces additional challenges. High inflation has led U.S. consumers to pull back from cosmetic products, with Juv\u00e9derm sales dropping 10% year-on-year in the fourth quarter.

AbbVie's broader business is also under pressure. Sales of its immunology blockbuster Humira, once the world's best-selling drug, are declining rapidly due to biosimilar competition. Additionally, the company recently faced setbacks in its pipeline, with its schizophrenia asset emraclidine failing two mid-stage trials in November 2024.

Layoff Details and Company Impact

The layoffs primarily target employees in sales, data engineering, and product management across various divisions. While most affected employees work remotely, 19 are based onsite at the Irvine facility.

It remains unclear how many full-time employees Allergan currently has, as AbbVie does not report such figures in its annual filings. However, Allergan's LinkedIn page shows around 2,100 associated members. As of the end of 2024, AbbVie employed approximately 55,000 people across more than 70 countries.

These workforce reductions reflect the ongoing challenges faced by AbbVie and its Allergan division as they navigate a complex landscape of marketing mishaps, economic pressures, and evolving market dynamics in the pharmaceutical and aesthetics industries.