July 20----244 lose jobs in Bergen as prescription service finishes takeover of Medco.
FRANKLIN LAKES -- Express Scripts Holding has some good news for Wall Street next month: The company that manages pharmacy benefit programs for employers, unions and government health plans is making the cuts it promised will result in $1 billion in cost savings after its acquisition of Medco Health Solutions.
Express Scripts, which reports second-quarter earnings on Aug. 7, laid off 258 employees throughout New Jersey on Thursday, including 244 in Bergen County, the company said. Shedding those jobs represents about a 12 percent reduction in Express Scripts' workforce in Bergen County, one of the largest single layoff announcements in the county this year.
Most of the layoffs, 216 people, were at Medco's campus in Franklin Lakes, which was the company's headquarters before the acquisition, according to an Express Scripts spokesman, Brian Henry. Another 28 were let go at two former Medco facilities -- 17 in Montvale and 11 in Fair Lawn, he added. Express Scripts also idled 14 people at its Willingboro location, Henry said.
The majority of the laid-off workers were informed on Thursday, and the layoffs were effective immediately, according to Henry. The employees affected were primarily doing business-support functions, he added.
"We continually assess our operational needs to ensure we are as efficient as possible, while meeting the needs of the clients and patients we serve," St. Louis-based Express Scripts said in a prepared statement. "As an organization, we position ourselves for future growth."
Express Scripts had 4,000 employees in New Jersey, with about 2,000 in Bergen, making it one of the county's largest employers. There have been some job cuts since the $29.1 billion takeover was completed in April, but Express Scripts has declined to say how many employees were involved. When the purchase was announced, Express Scripts said the acquisition would result in $1 billion in one-time savings.
Express Scripts current and former employees began arriving at the Blue Moon Mexican Cafe in Wyckoff shortly after 3 p.m. Thursday. The restaurant and bar has over the years been a sort of "Cheers" destination for employees of Medco. In the past, they gathered there to celebrate promotions and birthdays. This year it has become the place where everyone heads to after the latest round of layoffs.
Employees, who spoke anonymously with a Record reporter, said they knew the layoffs were coming and were pleased with the generosity of the severance packages they received. The employees said packages differed based on job and length of employment. One employee said she is receiving six months' worth of severance.
"They took care of us," said one woman.
The laid-off workers who gathered at Blue Moon were joined by other workers who are still employed by Express Scripts. The former and current employees said Medco was a great place to work, but they weren't so sure about Express Scripts.
"From what we've seen so far, we might be better off leaving than working for Express Scripts," said one laid-off employee.
The workers at Blue Moon said the staff camaraderie at Medco was one of things that made it a good place to work.
"It was a great job for a lot of years, so I'm not bitter," one laid-off worker said.
News of the job cuts came the same day the Walgreen pharmacy chain said it would begin filling prescriptions from customers in the Express Scripts network again starting in September under a new multiyear contract.
The pact comes after a series of disputes between Walgreen and Express Scripts that ended with the discontinuation of the contract last year.
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