"Merck plans more job cuts; 2Q profit rises
Drugmaker Merck's 2Q profit nearly triples on lower charges, higher sales; more jobs being cut
They can't cut another 12 percent of their headcount and expect it to have no effect. Something will suffer," said Erik Gordon, an analyst and professor at the University of Michigan's Ross School of Business, adding a big cut "makes analysts and short-term investors happy because it's a sure thing. Less sure is whether their future pipeline will be strong enough to avoid needing another merger and round of cuts."
Merck spokesman David Caouette told The Associated Press that 35 percent to 40 percent of the new job cuts will be in the U.S. He couldn't provide details on those cuts or site closures, but said Merck will "continue to hire in high-growth areas like emerging markets." Caouette noted Merck eliminated nearly 12,500 positions last year but only reduced total headcount by 6,000. The company had 91,000 employees at the end of July.
"All in, I think they're going to end up with probably 80,000 employees," said Deutsche Bank analyst Barbara Ryan, who said the new cuts weren't unexpected.
Drugmaker Merck's 2Q profit nearly triples on lower charges, higher sales; more jobs being cut
They can't cut another 12 percent of their headcount and expect it to have no effect. Something will suffer," said Erik Gordon, an analyst and professor at the University of Michigan's Ross School of Business, adding a big cut "makes analysts and short-term investors happy because it's a sure thing. Less sure is whether their future pipeline will be strong enough to avoid needing another merger and round of cuts."
Merck spokesman David Caouette told The Associated Press that 35 percent to 40 percent of the new job cuts will be in the U.S. He couldn't provide details on those cuts or site closures, but said Merck will "continue to hire in high-growth areas like emerging markets." Caouette noted Merck eliminated nearly 12,500 positions last year but only reduced total headcount by 6,000. The company had 91,000 employees at the end of July.
"All in, I think they're going to end up with probably 80,000 employees," said Deutsche Bank analyst Barbara Ryan, who said the new cuts weren't unexpected.