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Thursday, April 18, 2024

Syneos Health backs out of state incentives deal

Syneos Health, which was taken private in 2023 by a group of investors, has dropped out of the state’s job development investment grant program that would have paid it $8.4 million due to a decline in staffing.

Chief Accounting Officer Donna Kralowetz, in a letter to the state, noted that the company has 2,077 employees, which is 100 fewer workers than at the end of 2022.

“We genuinely appreciate the cooperation and guidance we have received throughout the duration of the agreement,” wrote Kralowetz. “However, due to unforeseen changes in market conditions and most notably the evolution of the work from home landscape, we have had to reevaluate our ability to meet our requirements as initially agreed to in our JDIG agreement.”

As part of its 2016 Job Development Incentive Grant, Syneos said it would create 495 jobs in Wake County and retain more than 2,080 positions. It received $874,000 from the state for reaching 2018 and 2019 job targets.

The company has a lease on its 258,000-square-foot headquarters in Morrisville through 2032, Kralowetz wrote.

Since 2018, Syneos Health has invested approximately $12.5 million in leasehold improvements and office equipment related to the headquarters, not including an additional $1.8 million of costs incurred for the upfits related to the building during 2023, she noted.

The company does contract research on new drugs. Other companies, including Raleigh-based Bandwidth, have also recently dropped out of the state incentive plan due to slow or declining employee growth.

Chris Roush
Chris Roush
Chris Roush is executive editor of Business North Carolina. He can be reached at croush@businessnc.com.

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