Baxter Malta will be laying off 95 workers by the end of the year.

The company, which produced medical consumables, will seek voluntary redundancies as a first step towards achieving the target reduction. Redundancies will be sought across a variety of roles and at all levels including staff, technical support and production associates, director Brian Tabone said.

He said that the decision to lay off staff was driven by the on-going need to improve cost competitiveness in light of European health system funding constraints and the impact on cost of an increasingly globalised and competitive market.

"Decisions like this are difficult to take, but this is a necessary step to secure the long term viability of our Malta operation.

"As an organisation we are very proud of all that we have achieved over the last 25 years. We have a very committed and engaged workforce totally dedicated to providing products that save and sustain thousands of patient’s lives every day," Mr Tabone said.

The General Workers' Union was informed of the company's decision during an urgent meeting this morning.

Section secretary Jason Deguara said that Malta Enterprise and the Investment Ministry have been informed and, together with the Employment and Training Corporation, will be involved in the process.

Mr Deguara said that the union and the management will embark on a series of meetings as from next week to discuss possible solutions, early retirement schemes and other avenues.

Malta is an important manufacturing site for Baxter and the manufacturing site in Marsa wouldremain an integral part of Baxter’s Medical Products franchise.

Earlier this month, pharmaceutical company Actavis revealed plans to close down its research and development department in Bulebel, laying off 64.

Managing director Sergio Vella had said that, following its acquisition by US giant Watson, the company ended up with many R&D units worldwide, creating duplication of work.