Merck cutting 7,200 jobs, says Pa. cuts will be insignificant
Philadelphia Business Journal
Merck & Co. Inc. said Wednesday it plans to cut 7,200 jobs, or 13 percent of its work force, in what will be the pharmaceutical company’s second restructuring effort during the past three years.
Merck spokesman Ian McConnell said, "We don't expect the reductions to be significant in Pennsylvania."
The company announced the job cuts, 40 percent of which will be in the United States, at the same time it reported its third-quarter earnings that showed profit declined 28 percent because of sluggish sales and restructuring charges.
Merck (NYSE:MRK) is based in Whitehouse Station, N.J., and has a large research and manufacturing operation in West Point, Pa. Merck has about 12,000 employees at West Point and other offices in suburban Philadelphia.
The new job cuts will come from across all areas of the company at facilities across the world and include 400 positions that are now vacant. The company plans to eliminate 25 percent of its senior and mid-level management positions.
Merck plans to close three basic research sites in Tsukuba, Japan; Pomezia, Italy; and Seattle by the end of 2009.
The company expects restructuring to yield cumulative pretax savings of $3.8 billion to $4.2 billion from 2008 to 2013.
Merck’s last restructuring, announced in December 2005, eliminated 10,400 jobs over the past three years.
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