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Genentech Gets Tax Breaks to "Save Jobs"

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Pharmaceutical manufacturer Genentech, a division of Switzerland's Roche Holding, recently spent $1.6 million to convince California voters that voting down Proposition 24 was the only way to preserve jobs in the Golden State.

Prop 24 would have ended three corporate tax breaks which were enacted in 2008 and 2009. Genentech spokeswoman Caroline Pecquet told the San Diego Union-Tribune that the breaks were "important economic incentives that support job growth and encourage innovative companies like Genentech to make investments and expand operations."

Thanks to intense lobbying by Genentech (and others), Prop 24 was voted down by a nervous populace, 58% to 42%. Great news! Genentech keeps its tax breaks, which, in turn, continues to "make investments and expand operations," right?

Well, see, um...theoretically, yes. But, uh...yeah, um...Genentech actually just announced that, as part of its "operational excellence" program, the company would be laying off 840 California employees.

Yeah, about that whole Prop 24 thing...must've been some sort of paperwork slip-up or something like that. Had to be. No doubt. Just a, y'know, I dunno...someone misfiled something or whatever?

I'm sure someone in the PR department has a perfectly reasonable explanation for this.
POSITION:  No positions in stocks mentioned.