AbbVie’s Allergan Aesthetics Unit Announces 202 Layoffs Amid Sales Slide

AbbVie’s Allergan Aesthetics unit is set to reduce its workforce by 202 employees as the company grapples with a decline in sales for its flagship products, including Botox and Juvederm. The layoffs, which will take effect in July, were disclosed via a California Worker Adjustment and Retraining Notification (WARN) Act notice. The news was first reported by The Orange County Business Journal.

A Need for Strategic Reorganization

A spokesperson for AbbVie explained that this decision stems from a need to reorganize the Allergan Aesthetics unit to ensure ongoing leadership in the highly competitive aesthetics industry. Of the jobs being cut, 19 positions are located at the company’s headquarters in Irvine, California, while the majority are remote. This isn’t the first instance of job cuts in the unit; the company previously laid off 99 employees at the same site in 2022 as part of broader restructuring efforts.

Financial Background: Revenue Decline

AbbVie acquired Allergan in 2019 for a staggering $63 billion, a strategic move aimed at diversifying its revenue streams in preparation for the impending market entry of biosimilars that threaten to impact the sales of its flagship immunology drug, Humira. Despite the initial hopes associated with the acquisition, Allergan’s aesthetics portfolio has been experiencing a downturn. Revenue from this sector declined by 2.2% last year, totaling $5.17 billion. The downward trend has persisted into 2025, with first-quarter sales dropping by an alarming 11.7% to $1.1 billion.

Struggles of Core Brands

The recent downturn can primarily be attributed to significant sales declines in well-known products like Botox and Juvederm, both experiencing double-digit drops during the latest earnings period. This decline in revenue is concerning for a company whose growth has historically been linked to these brands.

Focus on Future Growth

Despite these hurdles, AbbVie remains optimistic about the future of its aesthetics business. The company anticipates achieving a “high single-digit compound annual revenue growth rate” through 2029. This optimism is partly grounded in new product initiatives, including the recent launch of Skinvive, a dermal filler that features an innovative skin-smoothing delivery mechanism and received approval in 2023.

A Change in Loyalty Program

The challenging sales environment has been attributed in part to Allergan’s recent revamp of its aesthetics loyalty program. Allergan’s global president, Carrie Strom, indicated on a company earnings call that many providers perceived the new program as “too complex,” prompting a return to the original framework in response to feedback.

Industry-Wide Layoffs

AbbVie’s decision to lay off workers is reflective of a broader trend in the pharmaceutical industry. Other major companies, such as Bristol Myers Squibb, have recently announced significant job cuts, including plans to eliminate 516 positions in New Jersey, while Teva Pharmaceuticals intends to reduce its workforce by 8% over the next two years as part of cost-cutting measures.

Conclusion

As AbbVie’s Allergan Aesthetics unit navigates these tumultuous waters, the company is concentrating on restructuring efforts aimed at reaffirming its dominance in the aesthetics market. While the current sales downturn is troubling, AbbVie’s confidence in future growth underscores its commitment to revitalizing its aesthetics business amid significant competitive pressure and ongoing industry changes.

In conclusion, the ongoing changes in AbbVie’s Allergan division serve as a reminder of the volatile nature of the pharmaceutical market, alongside the necessity for companies to adapt and innovate to maintain leadership positions within their respective fields.

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AbbVie Cuts 202 Jobs in Allergan Aesthetics Amid Declining Botox and Juvederm Sales