LifeScan Scotland has revealed plans to cut up to 80 jobs at its plant in Inverness after experiencing years of tough markets for its products.
The largest private-sector employer in the Highlands said the job cuts were part of a wider move to shed 350 jobs from across its global diabetes care business.
At the same time, the firm’s owner revealed the business could be put up for sale after Johnston & Johnston (J&J) announced a “strategic” review of its global diabetes care group of companies.
In New Jersey, where the US healthcare giant is based, chairman and chief executive Alex Gorsky said J&J would “evaluate potential strategic options” for the business. This includes the potential for “operating partnerships, joint ventures or strategic alliances, a sale of the businesses, or other alternatives either separately or together”.
The move comes just months after J&J announced an £8.7million investment in the Inverness company, including a £1.85million grant from Highlands and Islands Enterprise (HIE).
The company is thought to employ over 1,000 in Inverness.
LifeScan, which produces blood glucose monitoring systems, has been hit with three years of declining sales and profits due to “adverse market conditions” and “strong competitive forces”.
Donna Lorenson, global consumer medical device communication & public affairs leader for J&J, said the move was part of a “global business reorganisation” that will affect “approximately 80 in Scotland, pending the outcome of the consultation process”.
She added: “Blood glucose meters and strips are household staples, growing in usage, and LifeScan is a world leader in volume for blood glucose monitoring devices.
“Evaluations like these help ensure our business can adapt to the changing market environment and meet the needs of customers and patients.”
A spokesman for LifeScan said the “restructuring” of the business which is leading to the job losses “would have taken place regardless” of J&J’s announcement about the review and possible sale of the firm.
Drew Hendry, MP for Inverness, Nairn, Badenoch and Strathspey, pledged to “exhaust all potential avenues to ensure the future of the Inverness business and its employees”.
He said: “LifeScan is a significant employer for the Highlands and news of this consultation will obviously cause a lot of worry and upset amongst the people that work there and their families. It will concern many others too because Lifescan has a workforce with great talent and specialist skills that have been built up over many years.
“Supporting those who now face the prospect of losing their jobs, must be our number one priority.
“I will work with Scottish Government and everyone else who can help to exhaust all potential avenues to ensure the future of the Inverness business and its employees.
“It is vital that we don’t lose the advantage that the world class expertise and dedication of the people working brings to the area. First, we must ensure we get the very best outcome for the folk at Lifescan who face an uncertain future.”
Highland Council leader Margaret Davidson said the group would speak with J&J’s chief executve to “understand what their issues are”.
She added: “This alongside some other highland job losses recently mean the role of HIE is more important than ever.”
