Skip to comments.Merck to Cut 16,000 Workers as Drugmaker Closes 16 Plants, Labs
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.
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.
“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
but but but
In February Nancy Pelosi said obamacare would create 400,000 jobs “almost immediately” amnd 4 million in the next decade
Stimulus deal still working.
$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.
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.
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.
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.”
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.