AstraZeneca Will Eliminate 8,000 Jobs Worldwide
January 28, 2010
The Associated Press reports AstraZeneca plans to ax 8,000 more jobs, or 12 percent of its work force, by 2014 to cut costs amidst its reported disappointing fourth quarter earnings. The Anglo-Swedish company said the job cuts will be made across all regions and divisions. The company also warned that the current year will be tough as key products come off patent and it loses unexpected benefits that boosted its 2009 earnings, like the swine flu outbreak. Chief Executive Officer David Brennan said the company was extending a cost-cutting program it launched in 2007, which had saved the company $1.6 billion annually at the end of 2009 -- at a restructuring cost of $2.5 billion. Around 12,600 jobs having already been axed under the program, although Brennan said the net figure was closer to 4,600 after new roles were created by the company, which employs around 63,000 people worldwide. The new round of cuts will be global, including sales and marketing, business infrastructure, research and development and the supply chain. Brennan said the company''s research & development division would see net cuts of around 1,800, adding there may be some closures of research and development sites or facilities as part of the reorganization. The company also plans to sustain double-digit growth rates in its emerging markets business by adding selected branded generics to its portfolio.