Pfizer to close more plants, cut 6,000 jobs

[OhioChick]

Source: Reuters

18 May 2010, 1902 hrs IST,REUTERS

NEW YORK: Drugmaker Pfizer Inc will cut 6,000, or 18 percent, of jobs at its 78 manufacturing plants over the next five years as it consolidates operations following last year's purchase of smaller rival Wyeth. The world's biggest drugmaker said it would cease operations at eight plants in Ireland, Puerto Rico and the United States by late 2015 and reduce activities at six factories in those countries, Germany and Britain. Pfizer had 40 manufacturing sites before acquiring more than three dozen Wyeth facilities in the October merger.

The affected plants make conventional pills, injectable medicines, biotech drugs and consumer healthcare products. Pfizer will wind down their operations over the next 18 months to five years, depending on business considerations such as the time required to transfer product manufacturing. The company had said in November that it would close six research sites and trim jobs in the United States and Britain as part of its ongoing absorption of Wyeth.

"We have a complex network of manufacturing plants, with excess capacity that is not good for costs," Nat Ricciardi, Pfizer's president of manufacturing, said in an interview. Pfizer can be more competitive, both in its operations and drug pricing, by streamlining its plants and improving their processes, Ricciardi said. "It's not disproportionately Wyeth," Ricciardi said, adding that many legacy Pfizer plants and employees are on the target list.

One of the biggest incentives for companies to merge is the ability to cut overlapping operations and employees, creating huge cost savings. Pfizer is counting on savings from the Wyeth merger to help offset expected plunging sales of its $12 billion-a-year Lipitor cholesterol fighter, which begins facing generic competition late next year. The 14 plants slated to cease operations or downsize are among Pfizer's 40 main sites for making prescription drugs. The company plans by June to make recommendations for facilities that make animal-health products and later this year will evaluate those that make drugs in emerging markets or nutritional products.


Read more: http://economictimes.indiatimes.com/news/international-business/Pfizer-to-close-more-plants-cut-6000-jobs/articleshow/5945734.cms

[Dappleganger]

1. Cutting plants in Ireland and Puerto Rico

This means that their workforce is truly shrinking, not just being moved somewhere cheaper for tax purposes.

My husband had two different jobs moved to PR and Ireland (and wrt to the last job being moved to Ireland, the word out is that plant will be closed soon as well). It's a shame because these are good-paying jobs, but there is a TON of middle-management and overlap which could probably be cut.

The company who just hired him is very lean with very little middle-management so they should continue to fare better than most.

[pdefalla]

6. No, much is being moved

Pfizer is shopping outsourcing in India.

[ihavenobias]

2. (Insert Viagra Joke Here) n/t

[SpiralHawk]

4. This is an outrageous corporate boner*

*Obligatory, but drug-free, gratuitous sexual reference

[Duer 157099]

3. Besides, "extra capacity" might lead to higher supply which might lead to lower prices

and we can't have that, especially with medications.

[dflprincess]

5. Pfizer has been in hysterics looking for ways to cut costs with Liptor going generic

They've been whining about their medical insurance costs apparently never thinking about the irony of that - given that pharma has done so much to make insurance unaffordable.

[jxnmsdemguy65]

7. Wow, even the drug dealers are getting laid off...

I love it!