Another Big Merck Reorg: 8,500 Jobs Cut To Save $2.5 Billion

You knew this was coming. After weeks of telegraphing that another big reorganization was being planned, Merck disclosed plans to eliminate about 8,500 positions – mostly in sales and marketing and R&D - in hopes of saving $2.5 billion by the end of 2015. Other changes include a shift in the R&D focus and scaling back facilities, such as shifting global headquarters - again - this time, to Kenilworth, New Jersey, from nearby Summit. The move comes just a few months after Merck hired former Amgen (AMGN) R&D chief and Merck alumnus Roger Perlmutter to run its flagging R&D machine, which has experienced several setbacks in recent years. And in fact, the announcement highlights plans he has already taken to emphasize oncology research and added emphasis on deals to acquire or license other drugs and drugmakers (back story). “These actions will make Merck a more competitive company, better positioned to drive innovation and to more effectively commercialize medicines and vaccines for the people who need them,” says Merck ceo Ken Frazier, in a statement. “Today’s announcement further underscores that we are committed to improving our performance in the short term while also investing for the long term to create value for patients, customers and shareholders.” A key part of the plan is to focus on certain therapeutic areas – diabetes, acute hospital care, vaccine and oncology – and 10 particular geographic markets – the US, Japan, France, Germany, C...
Source: Pharmalot - Category: Pharma Commentators Authors: Source Type: blogs