Health System in Turmoil: FDA Layoffs and Major Corporate Moves Shake Sector

The health sector faces major upheavals with FDA layoffs under the Trump administration affecting drug reviews, Rite Aid's potential bankruptcy, and Kellogg's legal scrutiny over health claims. Meanwhile, major incidents and global health threats add to the sector's challenges.

The Trump administration's broad layoffs at the FDA are significantly impacting the drug review system, threatening years of progress, as per sources. Under Secretary Robert F. Kennedy Jr., the FDA plans to cut 3,500 staff as part of President Trump's plan to reduce the federal workforce.

Rite Aid is contemplating another bankruptcy despite recent financial restructuring, according to the Wall Street Journal. The chain considers selling some of its businesses as an alternative, trying to stabilize the company financially after failed restructuring efforts.

Texas has initiated an investigation into Kellogg over potential health misrepresentation in its advertising, citing harmful ingredients in cereals. The Attorney General's office emphasized concerns over the impact of artificial colorings on health, potentially violating state laws.

(With inputs from agencies.)