Amgen Inc announced that it will be implementing job cuts affecting around 450 employees, which represents a reduction of less than 2% of its total workforce. This move is attributed to the rising costs of drug prices and inflation that the company is currently grappling with.

“We made these changes to realign our expense base in the face of intensifying pressure on drug prices and high levels of inflation so that we can continue to deliver value for our patients, staff and shareholders,” an Amgen spokesperson said in an emailed statement to Reuters. 

As per its most recent annual regulatory filing with the U.S. Securities and Exchange Commission, the company had a workforce of over 25,200 employees spread across more than 50 countries as of December 31, 2022.

The layoffs carried out by U.S. companies in January and February this year reached their highest level since 2009, revealed the same report by Reuters. Amgen's move to reduce its workforce highlights how the healthcare industry is being affected by the rapidly increasing interest rates.

As a result of organisational changes, Amgen laid off approximately 300 employees in January. The drugmaker's revenue for the fourth quarter experienced a slight decline, as lower revenue from its agreement to manufacture COVID-19 antibody treatments for Eli Lilly offset a 4% increase in its own drugs' sales.

The biotech firm provided its 2023 revenue forecast, which ranges from $26 billion to $27.2 billion, while analysts had estimated it to be around $27.17 billion.