A New York hedge fund that earlier this year flipped the board of Depomed Inc. and installed a new CEO to boost the company's value said Monday that it will cut 40 percent of its staff and move the drug company's headquarters out of California.
The move is necessary, Newark-based Depomed (NASDAQ: DEPO) said in a Securities and Exchange Commission filing, because it is turning over sales of its pain drug Nucynta to Collegium Pharmaceutical Inc. and won't need as large of a workforce or space.
Aerospace employment in Los Angeles County dropped by 3,000 jobs, or about 6 percent, to 51,000 between 2014 and 2016, according to a report released Monday from the Los Angeles County Economic Development Corp.
Most of the job losses were in aircraft manufacturing, which fell by 2,200, due in part to the closing of Boeing Co.’s Long Beach plant which built the C-17 Globemaster III cargo plane. That resulted in about 400 layoffs at the end of 2015, according to news stories.
The aerospace job losses were partially offset by a gain of 500 jobs in aircraft parts, engines and guided missiles, as well as space vehicles, due to the expansion of Space Exploration Technologies Corp. in Hawthorne.
No car company outside China makes batteries for their electric cars. Investors should hope it stays that way.
Japanese group Panasonic makes the battery cells in Tesla’s much-hyped “gigafactory” in Nevada. Other global car makers also outsource production of cells to East Asian specialists, even if they assemble them into battery packs in their own plants. Mercedes-owner Daimler is plowing $1.2 billion into what it calls “battery factories” in Germany, China and Tuscaloosa, Alabama, but these too will buy cells from others.
Wedged between iron and nickel on the periodic table, cobalt has suddenly emerged as the electric car killer. The once-obscure metal, a critical part of batteries, has nearly tripled in price since last summer as concerns grow about whether there will be enough cobalt to meet demand. The ingredients are certainly there for a shortage. Output is concentrated in the politically unstable Democratic Republic of Congo and refining is dominated by China. Demand is set to soar as companies from Tesla Inc. to Volkswagen AG ramp up production of electric vehicles.
“The storage battery is, in my opinion, a catchpenny, a sensation, a mechanism for swindling the public by stock companies,” wrote Thomas Edison in 1883.
Today, the battery industry is mustering for exponential growth as car makers electrify their fleets, most visibly at Tesla ’s $5 billion factory in Nevada. For investors looking to gain from the battery’s rise, though, the doubts of the 19th-century entrepreneur linger. The path to profitability is far from clear.