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Merck Plans 13,000 Layoffs

SturmgewehrSturmgewehr Member Posts: 4,420
edited August 2011 in General Discussion
Merck said it plans to hire in growing markets such as China.

Merck & Co. will cut as many as 13,000 jobs by the end of 2015, the company said in its second quarter earnings statement, as cost pressures brought on by generic competition spurs it to reallocate resources to emerging markets.

Sales staffs may be spared. "The reductions will come disproportionately form non-revenue-generating positions," said Merck spokesperson David Caouette. Administrative and headquarters positions will be cut, the company said. Other layoffs will result from the consolidation of offices and closure of manufacturing plans.

As many as 40% of the cuts will take place in the U.S. They are in addition to 17,000 previously announced layoffs stemming from the merger with Schering-Plough in 2009. Merck said it plans to hire in growing markets such as China. The company employed 91,000 as of June 30.

Generic competition will continue to cut into profits, the company said. Its patent on the top-selling asthma medication, Singulair, is set to expire next year. Singular accounted for 13% of Merck's $10.6 billion in drug sales during the second quarter.

http://sales-jobs.fins.com/Articles/SBB0001424053111904888304576476052261559900/Merck-Plans-13-000-Layoffs

Comments

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    shilowarshilowar Member Posts: 38,815 ✭✭✭
    edited November -1
    That's unfortunate. My brother works for Bristol Myers Squibb, often times a hit drug supports all the R&D and pays the bills for years. They take a big hit when a patent runs out.
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    KSUmarksmanKSUmarksman Member Posts: 10,705 ✭✭✭
    edited November -1
    I feel bad for the employees who will be cut...but to be honest, a decrease in the pharmaceutical market in the US can be interpreted as a GOOD THING.

    Let's face it, Americans are OVER DRUGGED! Between the laziness of the average idiot, and pressure from big pharma to push drugs, Docs have pretty much stopped trying to force lifestyle changes on people. "Why should I exercise and eat better when taking pills to fix the problem is easier" is the mantra of the new american

    Just look at the irresponsible over prescription of zombiefying ADHD drugs to children [xx(]
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    nmyersnmyers Member Posts: 16,880 ✭✭✭✭
    edited November -1
    If there was ever an industry that needed privatization, it's the drug companies.

    Pharma made contributions to many in Congress in order to get the 2004 bill passed, prohibiting the US Govt from negotiating lower drug prices for seniors on Medicare. So, unlike the VA which has negotiated a 20-25% discount for its patients, Medicare Part D subscribers must pay Full List Price (unless they are on Medicaid, in which case we pay Full List Price.)

    The drug companies have a World Price for drugs, & a US Price; the US Price is 20-25% higher, Pharma says, because no other country will pay the US Price.

    The drug companies continue to spend more on advertising than they do on research.

    Theoretically, the US Govt could develop & manufacture drugs at a fraction of the current price. But, it isn't going to happen, because most of us would complain if we paid competitive wages to government experts; who is going to work for a company whose wages are already frozen for the next 5 years?

    Neal
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    spasmcreekspasmcreek Member Posts: 37,724 ✭✭✭
    edited November -1
    our health care in whatever form is gradually draining away till someday all we will have left is owebummers grand scheme and no way to pay for it.....god...what a frickin mess...no jobs, more taxes, lots more imports, lots more dependents, lots moe illegals, lots more stifling rules & regs...DC is going to save us transforming the USA into a 3rd world s-hole
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    owen219owen219 Member Posts: 3,799
    edited November -1
    Our supply of drugs comes heavily from India, especially the cheaper and generic drugs. This will only make India prosper even more. Kinda like the China thing but just getting a good kickup with this Merck move. Big business is greedy and we are stupid. I say level the playing field by taxing all imports to equal US pricing on the same. This would easily clear up the government deficit too. Would solve many major problems and bring back jobs and prosperity to the US rather than promoting prosperity across the oceans at our expense. Make sense????
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    nmyersnmyers Member Posts: 16,880 ✭✭✭✭
    edited November -1
    Owen is right, many drugs are now made in India. But, R&D, as well as administration, is still based in the US & Europe.

    I like Owen's way of thinking: One area where I would like to expand the US Govt is an Office of Reciprocal Tariffs. A group of economists could follow regs on imports & exports throughout the world, & we could use regulations to level the playing field.

    On the other hand, I don't know that the US Govt can do anything right. If we established a new federal office, we would have to staff it with women, blacks, Hispanics, Asians, Pan-Pacific Americans, veterans, wives of veterans, & the disabled.

    Neal

    "I have given you a government that looks like you." ---- Al Gore
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    WarbirdsWarbirds Member Posts: 16,839 ✭✭✭✭
    edited November -1
    By making this announcement they had better be ready for the grade A talent to jump ship first instead of sticking around to get cut.
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