US pharmaceutical giant Merck announced today it would cut its worldwide workforce by 7,200 jobs by 2011 as third-quarter net profit plunged 28%.
Third-quarter net profit fell to $1.09 billion from $1.52 billion a year ago, while sales fell 2% from the third quarter of 2007 to $5.9 billion dollars, the company said in a statement.
Earnings per share were 80 cents, beating analysts' consensus forecast by a cent. But taking into account restructuring costs of $612 million, earnings per share fell to 51 cents.
In an ongoing effort to reduce costs, 'increase efficiency and enhance competitiveness,' the firm said it would slash 12% of its workforce by eliminating 6,800 active employees and 400 vacancies by the end of 2011.
40% of the job cuts will be in the US but research sites in Tsukuba, Japan, and Pomezia, Italy, are also set to close by the end of 2009, a company statement said.
The restructuring comes on the heels of one announced in 2005 and completed just last month that saw Merck shed 10,400 jobs. Its workforce stood at approximately 56,700 at the end of September.
Merck employs 350 people at its plant at Ballydine, Co Tipperary, and over 100 at a human health subsidiary in Leopardstown in Dublin. The company is also in the process of establishing a €200m biologics plant in Carlow, which is supposed to create 170 jobs by the end of 2011.
