Merck & Co., Inc. (NYSE: MRK), one of the largest pharmaceutical companies in the world, which is known for its treatments like Gardasil (human papilloma virus), Propecia (baldness), and Zocor (cholesterol) detailed its global structuring program on Friday. The company’s integration plans aim at its research and development, business operations, and manufacturing.
Merck Montreal spokesperson Vicent Lamoureux said that the company wanted to be in a better place to meet the goals of a global restructuring program announced following the November 2009 merger of Merck and Schering –Plough. Friday’s announcement is considered as an additional significant step the company was succeeded in integrating its global operations on schedule and moving forward with Merck’s strategic priorities.
The laysoffs are part of a global restructuring program with eight research centre closures across the network in addition to eight manufacturing sites shut down. However, there are still 16 larger labs left and consolidation of office facilities worldwide.
Merck hopes that its international workforce will be decreased by 15% in an attempt to cut down costs by US $3.5 billion between now and 2012 as part of the initial phase of its merger structuring program. However, it will keep employing new employees in strategic growth areas of the business if necessary.
The program is expected to result in savings of to $3.1 billion from nearly $2.7 in 2012 toward the $3.5 billion target.
Merck is employing careful approach to these actions like business development initiatives, exploring appropriate local partnerships, and site sales to minimize the potential impact on employees and communities. It makes an investment of $100 million over the following five years and collaborates with universities and companies.
Merck shares roars 0.9 % to $37.75 on Thursday on the New York Stock Exchange. It is currently one of the seven largest pharmaceutical companies in the world both by revenue and market capitalization.