The second largest drug manufacturer in US, Merck & Co. plans to reduce its workforce by 12 to 13% by 2015 and therefore thousands of employees are going to lose their jobs. The step was taken by Merck & Co. to save cost of additional $1.5 billion.
Merck & Co. had 100,000 employees at the end of 2009 and by 2010 company eliminated almost 12,500 positions and hired about 6,000 employees. A company spokesperson clarifies, "It's hard to know what the job count will be in 2015”. He also explains that the overall impact of the job-cut initiative will be major cost savings, some of which could be funded back into research and developments.
With the new job cuts, the restructuring program will contribute annual savings of $4 billion to $4.6 billion by the end of 2015, compared with an earlier estimate of $2.7 billion to $3.1 billion by late 2012, Merck said.
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