Lonza Group Ltd said it will carve out its specialty ingredients segment, resulting in the reduction of about 130 jobs.

In April, the Swiss healthcare product and services provider said its specialty ingredients unit performed below expectations with sales remaining on the same level as the first quarter of 2018 due to softening demand and clients' changing order patterns.

Lonza noted that the specialty ingredients business will remain fully owned by the company. However, the segment will have an independent management, with increased control over its operations and cost.

The carve-out will also help the business grow and strengthen in microbial control, Lonza added.

Following the separation, around 130 jobs may be made redundant by Lonza, of which 50 will be in Switzerland while 35 will be in the U.S. The company plans to transfer affected employees to vacant positions and offer early retirements, if appropriate, to minimize job losses.

The transaction is expected to be completed by mid-2020.