More Layoffs Seen For Big Pharma

[OhioChick]

12.21.06, 7:12 PM ET

Bad news for drug sales reps: firing you may be a dominant industry theme for 2007.

Cost cutting is likely to continue for large-cap pharmaceutical companies in 2007 and cuts in international sales forces could be a further source of savings, according to Banc of America analyst Chris Schott.

In a client note released Thursday, Schott noted that Pfizer (nyse: PFE - news - people )’s recent 20% U.S. sales force cut of about 2,000 reps was a step in the right direction, in his opinion, as the company looks to cut back on its overall cost structure. The layoffs added 5 cents per share per year to their earnings, according to Schott.

With these cuts expected to be completed by the end of 2006, Schott believed Pfizer has the further opportunity to slash headcount among its 20,000 international reps, based on his analysis of sector sales force efficiency.

http://www.forbes.com/markets/commodities/2006/12/21/pfizer-pharmaceuticals-update-markets-equity-cx_jl_1221markets21.html



And.....in other news.....


Pfizer's McKinnell to Get $180M Package

12.21.06, 6:19 PM ET

Pfizer Inc.'s former chief executive, Henry A. McKinnell, who was forced into an early retirement in part because of investor anger about his rich retirement benefits, will get every penny of it and more, a new regulatory filing shows.

McKinnell's package, which the company disclosed in a filing with the Securities and Exchange Commission Thursday, totals more than $180 million. It includes an estimated $82.3 million in pension benefits, $77.9 million in deferred compensation, and cash and stock totaling more than $20.7 million.

The total value could grow to almost $200 million if McKinnell gets a $18.3 million stock award, but that is contingent on the future performance of the stock of the world's largest drugmaker.

The company said McKinnell's departure "contractually obligated" it under his employment agreement to provide McKinnell with certain severance payments and benefits.

http://www.forbes.com/home/feeds/ap/2006/12/21/ap3276955.html

[NMDemDist2]

1. for $0.05 a share they are laying of 2000 people

:banghead:

that is just so f@#ked up on so many levels

[Fovea]

2. preditory capital

and the cult of endless growth.

This isnt even about a slavish adherence to Adam Smith.
Smith is passe'-- these folks are way beyond the wealth of nations.

corporations are more about being corporations than they are about being
producers of a product. The genius ghetto is now having their Niemuller moment.

[OneBlueSky]

3. when does corporate greed become too much? . . . when does it get bad enough . . .

that the government has to step in and do something about it? . . .

(probably never, given that the government is pretty much run by said corporations) . . .