3131 McKinney Ave, Suite 600, Dallas, TX214-438-4840info@challengeradvisors.com

Follow Us

Drug Manufacturer Merck Announces Plans to Cut 8,500 Jobs

Post 23 of 32
Drug Manufacturer Merck Announces Plans to Cut 8,500 Jobs

Strengthening its restructuring plans in an effort to focus more on the company’s commercial and R&D operations, Merck has announced it will cut 8,500 in job cuts worldwide (up from the previously announced 7,500). The total number of job cuts amounts to roughly 20% of the drug manufacturer’s workforce.

Merck claims the restructuring efforts will result in $2.5 – $3 billion in pre-tax costs, but hopes it will lead to $1 billion in savings by the end of 2014 and roughly $2.5 billion annually by 2015. Additionally, the announcement was good news to traders in the stock market as Merck, a member of the Dow Jones Industrial Average, saw shares go up 3%.

It stands to show that a company does not need to stop all activity in order to streamline processes and incorporate efficient practices. Merck is a good example about how a challenged company can begin to correct itself by setting clearly defined benchmarks and effectively executing a proper restructuring plan.

Shortcuts | Copyright 2019 Challenger Advisors LLC. | All Rights Reserved
Menu