Opioid Crisis Possible Cause of Layoffs
Written by Andrew-Rossi on July 9, 2018
Some officials say the recent announcement of layoffs at Cody Labs can be blamed on the rising opioid crisis.
Cody Labs is owned by the Lannett Company, which recently was awarded a $23 million-dollar loan from the State of Wyoming. Cody Chamber Director Tina Hoebelheinrich told Penny Preston with KULR-8 TV that the national concern about opioids may have driven the company’s decision.
State Auditor Cynthia Cloud told Preston that she was surprised by the announcement that the company would be laying off a third of their workforce, because just three weeks ago, officials from the company assured the State Loan and Investment Board that they would be staying.
The $23 million dollar loan from the State of Wyoming was intended to fund the construction of a new manufacturing facility on Road 2AB north of Cody. However, construction on that project was halted earlier this year.
However, Cloud pointed out that she didn’t believe the company was being dishonest in their statements – a new CEO recently took over Lannett Company, and she feels the new leadership could be taking the organization in a different direction.