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.
Thank you, obamar.
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.
At least none of the research labs and only one of the manufacturing plants that were closed were in the US.
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.
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?
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?
Obummer will then crow about how low everybody’s tax rates are because nobody is earning enough to really get sheared.
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.
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.
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
16,000 more beneficiaries of “hope” and “change”.
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.
And this is just the beginning!
16,000 x $22,000/year (unemployment) = $352,000,000 PER YEAR of unemployment.
Recovery Summer.
Mmmm, Mmmmm, Mmmmm.
Barack Hussein Obama
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.
That would be true if ALL of these jobs were in the U.S., but they’re not.
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