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Pfizer Has Cut Jobs, And Global Employees Have To Cut 2%!
Nov 15, 2018

Layoffs, not to save costs

 

It is reported that Pfizer currently has about 90,000 employees worldwide. What information is missing from the 2% reduction before the beginning of next year?

 

Pfizer spokesperson Sally Beatty told the media that layoffs are meant to create simpler, more efficient structures, not to save costs. Pfizer hopes to streamline its structure and eliminate some of its management roles.

 

This is not the first time Pfizer has cut jobs.

 

On January 7 this year, Pfizer publicly announced that it plans to abolish about 300 positions in the neuroscience research and early development projects in Andover, Massachusetts and Groton, Connecticut, in order to save on research and development expenses.

 

The layoffs were mainly for the pipeline staff in the early and mid-term of the neuroscience department, and stopped some of the research projects in clinical I/II. The reason for this layoff is "high cost and too little chance of success." This is different from the layoffs announced publicly on October 18.

 

In addition to personnel changes, according to public reports, Pfizer has also adjusted the company's organizational structure this year.

 

In July of this year, Pfizer announced that it has reorganized the company into three businesses, namely, the science-based innovative pharmaceutical business; the mature pharmaceutical business, which focuses on patented branded drugs and generic drugs, and has considerable autonomy within Pfizer; and health drugs. business. Among them, the hospital's pharmaceutical department, including anti-infectives and sterile injections, will be established in the innovative pharmaceutical business.

 

According to media reports, Pfizer’s documents show that layoffs will provide a severance package that pays 12 weeks of basic salary, plus three weeks of work per year, up to 104 weeks. Pfizer also said that in addition, employees who volunteer to retire early will receive any vested rights, health insurance and other benefits, and the current tax rate can be up to three years. A person 55 years of age who has served in the company for at least 10 years may be eligible to retire early according to the plan.

 

Multinational pharmaceutical companies, the tide of layoffs has come

 

Since the beginning of this year, the news of layoffs of multinational pharmaceutical companies has continued to hit, not only the above-mentioned Pfizer, but also Novartis, Novo Nordisk, GlaxoSmithKline, Takeda Pharmaceutical, Pfizer, Sanofi, Ai Jian and so on.

 

Guardian Blue high-end executives told the media that the main targets of these multinational pharmaceutical companies are medical representatives, new drug research and development departments with high failure rates, and non-core business personnel.

 

Summary of layoffs of some multinational pharmaceutical companies this year:

 

Ai Jian: 1400 layoffs

 

On January 3, Ailjian announced that it would lay off 1,400 people and become the "first ruling" of the New Year. The layoffs involved 1,000 employees in the company's business team, plus 400 stoppages. In addition to layoffs, Ai Jian announced that it will further save money through other measures. As soon as this measure is implemented, the company's operating costs can be saved by 300 million to 400 million US dollars compared with 2017.

 

Sanofi: 400 people laid off

 

In late January, Sanofi also started a new round of layoffs. According to official spokesman Ashleigh Koss, Sanofi is reducing the 400 employees of the US diabetes and cardiovascular sales team, but the cardiovascular team responsible for PCSK9 lipid-lowering drug Praluent. Will not be affected by the layoffs.

 

Novartis: 2200 layoffs

 

On September 25, Novartis announced that it plans to lay off 2,200 jobs in Basel, Stein, Locarno and Schweizerhal in Switzerland over the next four years, accounting for 16.92% of Novartis' total Swiss employees. The move will affect 1,500 pharmaceutical production frontline employees and about 700 business service staff, after the company also adjusted its ophthalmology business in August.

 

Novo Nordisk: 650 layoffs

 

On September 18th, Novo Nordisk released the “Project for Transforming R&D Method”, which will lay off 400 people in China and Denmark, including 30 Chinese R&D center personnel. In addition, according to Reuters news on September 28, Novo Nordisk spokesman said that it will also cut about 250 jobs in the United States. One hundred of the planned layoffs came from the company's logistics position at the US headquarters in Princeton, New Jersey, and the remaining 150 were from diabetes support positions.

 

GlaxoSmithKline: 650 layoffs

 

On September 12, GlaxoSmithKline spokeswoman Mary Anne Ryan said in a statement that the layoffs will include 100 in-house personnel from the IT Research Triangle Park in Philadelphia and North Carolina, from IT staff. It is involved in the administration of the office, and will also abolish 450 medical representatives scattered in 50 states.

 

Takeda: layoffs 450 people

 

On September 11, Takeda Pharmaceutical announced plans to close its US headquarters in Chicago and focus its US operations on the Boston area operated by Charles, which will close 1,000 related jobs and cut about 7% of its combined employees. In addition, Takeda Pharmaceutical expects that the acquisition of Charles will be completed in early 2019.

 

Some analysts believe that there are three main reasons for the layoffs of multinational pharmaceutical companies:

 

First, influenced by the market and policies, its global strategic adjustment began to focus on segmentation areas and triggered layoffs;

 

Second, the merger and acquisition of pharmaceutical companies and the outsourcing of product lines, redundant personnel were cut;

 

The third is to save operating costs, invest in the advantage of business, that is, spend money on the cutting edge.

 

In response to this topic, Shi Lichen, founder of Beijing Dingchen Medical Consulting, told the media that with the changes in policies and market environment, the layoffs of multinational pharmaceutical companies have become a trend.

 

The layoffs are mainly divided into three steps, one is non-medical professionals; the other is non-main product personnel; the third is to compress professional marketing teams, that is, the medical representatives that everyone often says.


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