Monday, November 28, 2005

And in business news today.

Another CEO attempts to cover his incompetence by slashing his workforce and burning his assets.
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.

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.
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.

And a Merry Christmas to all Merck employees.

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