Merck to Fire 8,500 in Strategy Overhaul That Shifts R&D
Merck & Co. (MRK), the second-biggest U.S. drugmaker by sales, will fire 8,500 workers and revamp its research and development after seeing new medicines delayed by U.S. regulators.
The positions eliminated are in addition to 7,500 job cuts Merck had already announced, the Whitehouse Station, New Jersey -based company said in a statement today. The firings now equal about 20 percent of the global workforce, and will cut across the entirety of Merck, including R&D, sales and management.
The 8,500 jobs to be eliminated are in addition to the 7,500 positions Merck has already announced, the Whitehouse Station, New Jersey-based company said in a statement today.
The overhaul, to save $1 billion next year, is part of a strategy being set by Chief Executive Officer Ken Frazier and R&D chief Roger Perlmutter, hired in April to replace Peter Kim. Under Kim, experimental drugs in cardiovascular, surgery, and osteoporosis suffered setbacks while rival drugmakers were able to get new products to market.
“While these actions are essential to ensure that Merck can continue to fulfill its mission into the future, they are nevertheless difficult decisions,” Frazier said in the statement.
http://www.bloomberg.com/news/2013-10-01/merck-top-scientist-plans-major-changes-for-drug-research.html