Merck job cuts are on the way, according to Reuters on Oct. 1. The company is slated to cut 8,500 jobs in an effort to slash operating costs by $2.5 billion. Though the company's shares have been slightly rising, it is making the cuts to narrow its focus.
The Merck job cuts of 8,500 positions comes on top of the 2011 restructuring that eliminated about 13,000 positions, half of which have not been put through as of yet. It is being reported that competition from generic medicines is causing Merck & Co. along with other rival companies to shift focus and make deep cuts. Other issues said to be at play are a lack of sales growth on key drugs and a lack of progress with late-stage trials.
Many of the new job cuts will be in the research and development area. Some areas of research will be abandoned, but it seems few solid decisions have been made at this point. Nearly half the cuts will be put in place by the end of 2014, with the remaining cuts happening by the end of 2015. Administrative, sales and manufacturing areas were heavily hit in the 2011 restructuring, with administrative and marketing areas to be included in the new rounds of Merck job cuts.