Monday, August 3, 2015

PhillyInc receives prescription for more Merck job cuts

The global pharmaceutical company says it will cut 12,000 to 13,000 jobs by 2015 in another major restructuring.

PhillyInc receives prescription for more Merck job cuts

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More job cuts are planned for Merck & Co.

The Whitehouse Station, N.J.-based pharmaceutical company said that it plans to slash 12 percent to 13 percent of its jobs by 2015. The AP calculates that would amount to 10,920 to 11,830 of the current 91,000-member workforce. The AP calculates that would amount to 12,000 to 13,000 more job cuts.

It's not clear what impact the cuts could have on Merck's enormous complex in West Point, Montgomery County, where it employs 12,000 people.

If you're keeping track, this would be the second major restructuring program by Merck since it acquired Schering-Plough less than two years ago. The first one involving cutting 20,000 jobs;  Merck said it could complete that process by the end of 2012.

UPDATED: The AP says that by the time Merck has completed this latest restructuring the company will have eliminated 30,000 positions since November 2009. The company, which had about 91,000 employees as of June 30, had cut about 5,000 jobs in the months before the Schering-Plough transaction.

This latest restructuring was included in Merck's financial report on its second quarter, which was a good one as revenue rose 7 percent to $12.2 billion. Net income of $2.02 billion, or 65 cents per share, was way up from the $752 million, or 24 cents per share for the second quarter of 2010. Last year's quarter included nearly $2B in various charges.

Here's AP's report. And here's Merck's press release on the earnings.

NOTE: This post has been updated to correct information about Merck's restructuring plan.

Inquirer Columnist
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About this blog
Mike Armstrong blogs about Philadelphia corporations and business-related topics. Contact him at 215-854-2980. Reach Mike at marmstrong@phillynews.com.

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