Monday, November 28, 2005
And in business news today.
Another CEO attempts to cover his incompetence by slashing his workforce and burning his assets.
And a Merry Christmas to all Merck employees.
Pharmaceutical giant Merck & Co. Inc. today said it will cut 7,000 jobs and close or sell five factories as the maker of the once-popular pain killer Vioxx seeks to slash manufacturing costs and reduce the time it takes to introduce new products.Wall St may not have been impressed, but you can bet his board will be and they will probably give him a raise and increased "performance" bonus and stock grants. Poor boy is working his fingers to the bone.
The New Jersey-based company announced the restructuring plan as it faces thousands of lawsuits over Vioxx and upcoming patent expiration of its cholesterol-reducing drug Zocor, the company's top seller.
The job cuts and factory closures, however, failed to ignite much enthusiasm on Wall Street. Merck stock, a component of the Dow Jones industrial average, was down nearly 4% in early afternoon trading.
Merck said in a statement that the layoffs, amounting to 11% of its workers worldwide, are part of a plan to "to create a leaner, more cost-effective and customer-focused manufacturing model over the next three years" and eventually result in $4 billion in annual savings.
And a Merry Christmas to all Merck employees.
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