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Merck to Slash 15% of Workforce, Save up to $3B - CBL
By Citybizlist Staff
WHITEHOUSE STATION, N.J., - According to an 8-K filing with the U.S. Securities and Exchange Commission, pharmaceutical giant Merck & Co. will cut about 15 percent of its workforce and eliminate approximately 2,500 vacant jobs.
The Whitehouse Station, N.J., company said layoffs will affect all areas of the company worldwide and should be accomplished by the end of 2012. Merck said it will achieve reductions by eliminating duplicative positions in sales, administrative and headquarters offices, as well as from the consolidation of manufacturing plants and research and development operations.
Merck expects this initial restructuring to yield annual savings of $2.6 billion to $3.0 billion. As of Dec. 31, 2009, Merck had approximately 100,000 employees.
The announcement, included with the company's quarterly and year-end financial report, comes in the wake of Merck's $41.1 billion purchase of Schering-Plough last November. With the acquisition Merck became the world's second-biggest pharmaceutical company, behind Pfizer Inc.
For the fourth quarter, Merck (NYSE: MRK) reported net income of $6.49 billion, up from $1.64 billion in 2008, with much of the increase due to Schering-Plough sales and merger-related accounting items. The 79 cents per share earnings matched estimates.
For its 2009 fiscal year Merck reported net income of $12.9 billion, or $5.65 per share, up 65 percent from the previous year. Revenue jumped 15 percent to $27.43 billion.
Merck opens trading today at $36.92. The 52-week range is $20.05 - $41.56.
Reg 8-K filing: http://tinyurl.com/ydgsva2
About Merck from the company's Web site
Today's Merck is working to help the world be well. Through our medicines, vaccines, biologic therapies, and consumer and animal products, we work with customers and operate in more than 140 countries to deliver innovative health solutions. We also demonstrate our commitment to increasing access to health care through far-reaching programs that donate and deliver our products to the people who need them. Merck. Be Well. For more information, visit www.merck.com.
