AB BioTechnologies recently laid off 10 workers — more than 60 percent of its workforce — to focus its resources and raise capital for the company's manufacturing expansion.
Jeff Schwegman, founder and CEO of AB BioTechnologies, had plans to spend $4 million on manufacturing equipment earlier this year to round out the pharmaceutical development and life sciences consulting company's new $12 million facility on Bloomington's west side.The manufacturing line was expected to come online in June, but by late July, the company had yet to raise enough funds. As a result, AB BioTechnologies is operating with a reduced workforce to continue its development and consulting work while looking for additional fund.
"Honestly, this is not unusual in our industry. It was just a funding issue," Schwegman said. "Without the funding, we had to delay getting our manufacturing equipment going. Everything else is still going strong."
News of the workforce reduction comes months after AB BioTechnologies moved into its 24,000 square foot facility at 3770 W. Jonathan Drive. In February, company representatives said the building was 95-percent complete. Since then, Schwegman said the company was looking for ways to conserve funds. When the layoffs did come, the company provided information to assist in transitioning to unemployment.