Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Merck to Cut 16,000 Workers as Drugmaker Closes 16 Plants, Labs
Daily Finance ^ | 7-9-2010

Posted on 07/08/2010 11:33:52 PM PDT by My Favorite Headache

Merck (MRK), the world's second largest drugmaker, said Thursday it plans to close eight manufacturing plants and eight research facilities around the world in its bid to save $3.5 billion a year.

The Whitehouse Station, N.J.-based company is also reducing its workforce by 15%, or some 16,000 jobs, it said.

The actions are part of a restructuring the company has undertaken following its $41 billion acquisition of rival Schering-Plough in November. In addition to the plant closings, Merck said it will consolidate some offices worldwide, as part of the restructuring begun last December.

"Today's announcement is another important step as we successfully integrate our global operations on schedule and move forward with Merck's strategic priorities," said Richard T. Clark, Merck chairman and chief executive.

Research facilities targeted for closing during the next two years are in Cambridge, Mass.; Montreal; Odense, Denmark; Waltrop, Germany; Newhouse, Scotland; and three sites in the Netherlands. Merck's women's health research, now centered in Oss, the Netherlands, will be relocated primarily to the U.S., the company said.

Presently, the company intends to cease manufacturing operations in the following locations: Comazzo, Italy; Cacem, Portugal; Azcapotzalco and Coyoacan, Mexico; and Santo Amaro, Brazil. Further, Merck said it intends to sell plants in Miami Lakes, Fla., and Mirador, Argentina. In Singapore, chemical manufacturing will be phased out from an existing Merck plant and shifted to a Schering-Plough facility acquired in the merger, although pharmaceutical manufacturing operations will continue at both plants, Merck said.

Following release of the news, Merck shares were up less than 1% in early trading on Wall Street to $35.69 each.


TOPICS: Business/Economy; Extended News; News/Current Events
KEYWORDS: bhohealthcare; biden; donttalkcost; economy; manufacturing; merck; obama; obamacare; obamacarecost; pharmaceuticals

1 posted on 07/08/2010 11:33:53 PM PDT by My Favorite Headache
[ Post Reply | Private Reply | View Replies]

To: My Favorite Headache

Thank you, obamar.


2 posted on 07/08/2010 11:34:46 PM PDT by boycott (CAL)
[ Post Reply | Private Reply | To 1 | View Replies]

To: boycott

No way he survives in November. I heard from 2 different people in the last 24 hours who lost their jobs this week “unexpectedly”. One was at her job for the last 9 years and the other 4. Their positions were being consolidated and phased out.

That makes the total of people I know laid off or fired this year to 17. Of those only 3 have found work for half of what they used to make and 1 works part time.


3 posted on 07/08/2010 11:38:21 PM PDT by My Favorite Headache (Obama is Dangerclown The Manchild)
[ Post Reply | Private Reply | To 2 | View Replies]

To: My Favorite Headache

At least none of the research labs and only one of the manufacturing plants that were closed were in the US.


4 posted on 07/08/2010 11:42:48 PM PDT by Lucius Cornelius Sulla (Good night. I expect more respect tomorrow - Danny H (RIP))
[ Post Reply | Private Reply | To 1 | View Replies]

To: My Favorite Headache

The merger doubtlessly implies factoring out the duplicate work that was going on between the two firms. In one sense this is business as usual. Still, it’s the Bummercare environment that is forcing this kind of merger.


5 posted on 07/08/2010 11:44:42 PM PDT by HiTech RedNeck (I am in America but not of America (per bible: am in the world but not of it))
[ Post Reply | Private Reply | To 1 | View Replies]

To: My Favorite Headache

Another “fundamental change” we voted for. Another evil drug company brought to its knees. How’s that “Hope and Change” working for those Americans who voted for that silly peacock?


6 posted on 07/09/2010 12:43:36 AM PDT by Dapper 26
[ Post Reply | Private Reply | To 1 | View Replies]

To: My Favorite Headache

No way he survives in November. I heard from 2 different people in the last 24 hours who lost their jobs this week “unexpectedly”. One was at her job for the last 9 years and the other 4. Their positions were being consolidated and phased out.

That makes the total of people I know laid off or fired this year to 17. Of those only 3 have found work for half of what they used to make and 1 works part time.


Those numbers are absolutely tragic. So many good paying jobs are being lost. Where is obama going to get his tax dollars if no one has an income?


7 posted on 07/09/2010 12:50:55 AM PDT by boycott (CAL)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Lucius Cornelius Sulla
At least none of the research labs and only one of the manufacturing plants that were closed were in the US.

You missed this one:

"Research facilities targeted for closing during the next two years are in Cambridge, Mass.;"

I know a few Drug reps that are on pins and needles. The drug companies are cutting back on drug research and especially related to older neurological diseases. They have flat out stated that under Obamacare the reimbursements will not cover the costs. This is one real example of the "deathpanel" in action.
8 posted on 07/09/2010 12:51:53 AM PDT by PA Engineer (Liberate America from the occupation media.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: boycott

Obummer will then crow about how low everybody’s tax rates are because nobody is earning enough to really get sheared.


9 posted on 07/09/2010 1:03:13 AM PDT by HiTech RedNeck (I am in America but not of America (per bible: am in the world but not of it))
[ Post Reply | Private Reply | To 7 | View Replies]

To: My Favorite Headache

It’s time for the sickness that is Obama to step down. This POS should be in jail or tried for treason.

This does not have to happen.


10 posted on 07/09/2010 1:14:19 AM PDT by freekitty (Give me back my conservative vote; then find me a real conservative to vote for)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PA Engineer
“The drug companies are cutting back on drug research and especially related to older neurological diseases. They have flat out stated that under Obamacare the reimbursements will not cover the costs. This is one real example of the “deathpanel” in action.”

This was inevitable, and tragic. Innovation is the fuel of our economy, and we are throwing away our future for the sake of liberal social engineering.

11 posted on 07/09/2010 2:14:35 AM PDT by pieceofthepuzzle
[ Post Reply | Private Reply | To 8 | View Replies]

To: Dapper 26
Charles River Research (suppliers of labatory mice) was the canary in the pharmaceutical coal mine. They started laying off and closing facilities about a year ago.
12 posted on 07/09/2010 2:23:36 AM PDT by Lonesome in Massachussets (The naked casuistry of the high priests of Warmism would make a Jesuit blush.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Lucius Cornelius Sulla

At least none of the research labs and only one of the manufacturing plants that were closed were in the US


Most of the labs and plants had already been shipped out of the US mainland years ago...so not as much harm to the US economy....that harm was done previously

What the Merck cutbacks really show is that the company cannot make money in countries where it is cheaper to research and make pharmaceuticals. The global economic slowdown will not stop


13 posted on 07/09/2010 2:51:43 AM PDT by UCFRoadWarrior (JD for Senate ..... jdforsenate.com. You either voting for JD, or voting for the Liberal...)
[ Post Reply | Private Reply | To 4 | View Replies]

To: My Favorite Headache

16,000 more beneficiaries of “hope” and “change”.


14 posted on 07/09/2010 3:14:39 AM PDT by Pollster1 (Natural born citizen of the USA, with the birth certificate to prove it)
[ Post Reply | Private Reply | To 1 | View Replies]

To: freekitty

He is not qualified to be President unless his true father is someone other than Barack Hussein Obama Sr., and is a U.S. citizen; a reason the birth certificate matters.

Since he claims to be the son of Barack Hussein Obama Sr. he does not meet the requirements of natural born citizen. He needs to be removed from office.


15 posted on 07/09/2010 3:29:32 AM PDT by Bluebird Singing
[ Post Reply | Private Reply | To 10 | View Replies]

To: My Favorite Headache

And this is just the beginning!


16 posted on 07/09/2010 3:54:10 AM PDT by SonOfDarkSkies (Does building demolition count as a Muslim engineering achievement?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Pollster1

16,000 x $22,000/year (unemployment) = $352,000,000 PER YEAR of unemployment.


17 posted on 07/09/2010 4:22:00 AM PDT by onona (dbada)
[ Post Reply | Private Reply | To 14 | View Replies]

To: My Favorite Headache

Recovery Summer.

Mmmm, Mmmmm, Mmmmm.
Barack Hussein Obama


18 posted on 07/09/2010 4:54:40 AM PDT by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: My Favorite Headache

I’m in the industry, it has been bleeding for quite some time due to large M&A and the uncertainty of Obamacare.

Pharma layoffs near 35K in first half of 2010
http://www.fiercepharma.com/story/pharma-layoffs-near-35k-first-half-2010/2010-07-01
The pharmaceutical industry has eliminated 34,987 positions so far this year, second only to the government in total number of layoffs in 2010.


19 posted on 07/09/2010 5:12:01 AM PDT by TSgt (We will always be prepared, so we may always be free. - Ronald Reagan)
[ Post Reply | Private Reply | To 1 | View Replies]

To: onona

That would be true if ALL of these jobs were in the U.S., but they’re not.


20 posted on 07/09/2010 5:24:12 AM PDT by imfleck
[ Post Reply | Private Reply | To 17 | View Replies]

To: My Favorite Headache
The pharmaceutical companies are prepping for Obamacare. The managers of these companies have studied the albatross called Obamacare and can see the writing on the wall and are acting proactively before it is instituted.
21 posted on 07/09/2010 5:29:52 AM PDT by vetvetdoug
[ Post Reply | Private Reply | To 1 | View Replies]

To: My Favorite Headache

Another merger of two giant companies and the result is elimination of duplicate functions which in turn results in the loss of thousands of jobs.

Over the last 20 years we’ve seen little to no enforcement of anti-trust laws. Almost every major industry is consolidating into one to three major mega companies with close ties to government at all levels. The giants contribute millions to political campaigns to gain loopholes and other anti-competitive advantages in legislation. The giants have access to low cost capital. The giants bludgeon their suppliers to give favorable pricing and terms, in direct violation of the laws that are not enforced by the complicit government.

The free market is gone. We have a quasi socialist system where big firms are tolerated and given special privileges if they play along with big government. The small businessman and entrepreneur trying to start or grow a business now must compete against the leviathans allied with big government.


22 posted on 07/09/2010 5:38:58 AM PDT by Soul of the South (When times are tough the tough get going.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: boycott

“Where is obama going to get his tax dollars if no one has an income?”

He is going to take a big big chunk of yours, starting next year. So if you are savinm money now- fuggedabout it next year and just send it to Dictator Sam

and he is already spending anticipated taxes on carbon, even though capn tax hasnt been foisted on citizens yet, in the dead of night, by pelosi inc


23 posted on 07/09/2010 5:45:18 AM PDT by silverleaf (Those who can make you believe absurdities can make you commit atrocities.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: TSgt

but but but

In February Nancy Pelosi said obamacare would create 400,000 jobs “almost immediately” amnd 4 million in the next decade
http://www.youtube.com/watch?v=EFWdiS55_j8


24 posted on 07/09/2010 5:48:53 AM PDT by silverleaf (Those who can make you believe absurdities can make you commit atrocities.)
[ Post Reply | Private Reply | To 19 | View Replies]

To: My Favorite Headache

Stimulus deal still working.


25 posted on 07/09/2010 6:03:50 AM PDT by Vaduz
[ Post Reply | Private Reply | To 1 | View Replies]

To: onona

$352,000,000 PER YEAR of unemployment is quite a swing in the local government budget, and that’s without counting lost tax revenue and other indirect losses.


26 posted on 07/09/2010 6:15:24 AM PDT by Pollster1 (Natural born citizen of the USA, with the birth certificate to prove it)
[ Post Reply | Private Reply | To 17 | View Replies]

To: My Favorite Headache

And you have to factor in the illegals taking jobs Americans will do. Our neighbor are black, they will be voting for the Republican candidate Charlotte Bergmann http://www.bergmannforcongress.com/ for the US 9th District TENN in the August primary. Their daughter lost her job to an illegal, and my neighbor’s wife works at a kids hospital. Very hard working couple and great neighbors.


27 posted on 07/09/2010 6:43:34 AM PDT by GailA (obamacare paid for by cuts & taxes on most vulnerable Veterans, retired Military, disabled & Seniors)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Soul of the South

Indeed to everything you said. Reminding me of the European countries I studied about as a kid in the late 70s and 80s in school.

Can’t believe I am seeing this happen.


28 posted on 07/09/2010 8:36:25 AM PDT by My Favorite Headache (Obama is Dangerclown The Manchild)
[ Post Reply | Private Reply | To 22 | View Replies]

To: GailA

Had an interesting discussion this morning with the Waste Management representative (aka garbage man) who comes to my house twice a week. When I approached about why he didn’t take the bags of brush and branches from the previous week...was there some kind of new day set up for it or a new law or something I needed to know about it?

He was a black individual as well who said “Oh ya’ll have had an illegal Mexican doin your street nahhhme...so blame him. I said I am not looking to blame anything I just need an answer so this stuff gets taken...”Well, this ain’t my job it was some Mexican’s and I don’t know no laws about trash so you’d have to talk to him about laws and whatever but I don’t think he’s comin back.”


29 posted on 07/09/2010 8:41:18 AM PDT by My Favorite Headache (Obama is Dangerclown The Manchild)
[ Post Reply | Private Reply | To 27 | View Replies]

To: My Favorite Headache

Odd conversation. Most of the trash collectors know what they are supposed to pick up. Ours do in Memphis. LOL they won’t take old newspapers/mags/cardboard unless it’s broken down, and placed in a paper sack. You will find certain recycling items left on your lawn it it is not one of the items they take.

I’m hearing subtle remarks from the black community about the illegal taking jobs. Unemployment in Memphis is about 10%, maybe a tad higher.


30 posted on 07/09/2010 10:32:55 AM PDT by GailA (obamacare paid for by cuts & taxes on most vulnerable Veterans, retired Military, disabled & Seniors)
[ Post Reply | Private Reply | To 29 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson