The new round will hit hard in the United States. Some 35% to 40% of the cuts will be concentrated in the company's U.S. operations, a Merck spokesperson told Dow Jones. Layoffs will come at headquarters, in administrative functions, via consolidation of office facilities, and from the ongoing sale and closure of manufacturing plants. The company plans to continue hiring in some markets, especially emerging markets that Merck has targeted for growth as drug sales stagnate in the U.S. and Europe.
"The realities of our environment dictate the need to operate more flexibly and nimbly from a lower cost base," Merck CEO Kenneth Frazier said on a conference call with analysts (as quoted by the WSJ). Those "realities" include the loss of exclusivity on its blockbuster allergy-and-asthma drug Singulair. "They are focusing on costs," CLSA analyst David Maris told Bloomberg. "That is exactly what they need to do under the new environment we operate under."
"The realities of our environment dictate the need to operate more flexibly and nimbly from a lower cost base," Merck CEO Kenneth Frazier said on a conference call with analysts (as quoted by the WSJ). Those "realities" include the loss of exclusivity on its blockbuster allergy-and-asthma drug Singulair. "They are focusing on costs," CLSA analyst David Maris told Bloomberg. "That is exactly what they need to do under the new environment we operate under."