Pfizer to cut 10,000 jobs, close plants

http://news.yahoo.com/s/ap/20070122/ap_on_bi_ge/pfizer_restructuring


Pfizer Inc., struggling with fierce competition from makers of generic drugs, announced Monday it will cut 10,000 jobs and close at least five facilities to slash its annual costs by up to $2 billion by next year.

The drastic measures by the world's largest drug maker highlight the challenges faced by many pharmaceutical companies recently. In addition to patent expirations, big drug companies are facing a business climate where insurers and other large purchasers of medicines are demanding lower prices and more evidence of products' worth.

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It's the second time in two years the maker of Viagra and
Lipitor has announced a major cost-reduction plan to combat the loss of about $14 billion in revenue this year due to expiring patents. The company is at risk of losing 41 percent of its sales to generic competition between 2010 and 2012, according to Prudential analyst Tim Anderson.

The latest cuts, forecast to save $1.5 billion to $2 billion, come on top of a previously announced plan to cut costs by $4 billion a year by 2008. The 10,000 layoffs amount to about 10 percent of the company's global work force and include the elimination of 2,200 jobs from the U.S. sales force, which Pfizer announced late last year. The company said Monday it would cut 20 percent of its European sales force but didn't say how many jobs that will be.

Pfizer will close three research sites in Michigan and two manufacturing plants in New York and Nebraska. It may also sell another manufacturing site in Germany and close research sites in Japan and France

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Revenue was essentially flat at $12.60 billion, compared with $12.55 billion a year ago. Analysts expected sales of $12.62 billion.

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Mich. doesn't need anymore job wacks (neither does any of the other places, but Mich. is really suffering)

I can just see all the horny old men around the country forming a lobby and protesting.

That'll probably be the amount of the bonus pool for chief officers a year from now.

Actually Pharmaceuticals like Pfizer pay even their technicians very very well. They are considered some of the most desirable employers for Lab Technicians like me (excellent benefits I hear too). To hear of these big cuts is surprising, because most Techs regard Pharma positions as extremely safe (bad news for me, I am doing a temp job now and this probably means more competition for the stuff I want)

We can't afford to lose any more jobs ...especially in the sciences or technology