BMS to cut extra 10% from workforce
pharmafile | December 17, 2008 | News story | Sales and Marketing |Â Â BMSÂ
Bristol-Myers Squibb is to cut its global workforce by an extra 10% before 2010, in order to reduce costs and offset patent expiries on drugs.
It is the second round of cuts announced by the company within 12 months, and is just the latest in a long list of pharma industry redundancies in recent weeks.
BMS first announced a reduction of 10% in its workforce in December 2007 – a figure representing 4,300 jobs in order to make savings of up to $1.5 billion by 2010.
In July 2008 the company spoke of expanding its cost-savings plan, and will now shed a further 10% of its global workforce.
BMS would not reveal the exact number of cuts to come, only that 800 filled or vacant positions would go before the end of 2008, indicating more were likely to follow.
BMS says the further redundancies are necessary to cut costs further. It now aims to achieve an extra $1 billion in savings by 2012 through unspecified actions.
US spokeswoman Sonia Choi told Reuters: "As part of the expansion of our productivity initiative announced in July, the goal is another 10% cut in our global workforce, with those headcount reductions continuing through 2010."
The company will lose patent protection on its blockbuster Plavix which it co-markets with Sanofi-Aventis, in 2011. BMS stand to lose around $3 billion in annual revenues when the drug goes off patent, and has no equally heavy-hitting product which can replace it.
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