Pharmaceuticals group Pfizer is to close its research and development (R&D) facility in Kent, which employs 2,400 people.
Pfizer said the majority of people would be made redundant over the next two years.
But it added that it hoped to transfer several hundred positions to other sites or other companies doing work for Pfizer.
The company closed its manufacturing operations in Sandwich in 2007.
The move is part of Pfizer's reorganisation of its research and development capacity across the world.
The Sandwich site does research and development on allergy and respiratory drugs.
Pfizer's Ruth McKernan, who heads the site, said it had played "an important role in the discovery and development of medicines and has brought many life-saving treatments to patients".
A company spokesperson said the decision to close Sandwich did not reflect any unhappiness with government policy.
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