Pfizer cuts 700 jobs in France
pharmafile | December 17, 2008 | News story | Sales and Marketing |Â Â France, Jobs, restructureÂ
Pfizer is to cut its workforce in France by axeing 700 jobs in order to reduce costs and counteract patent expiries on its drugs.
This means nearly a quarter of the divisions workforce will go – a huge proportion when compared with the 10% of employees the company said would be affected by global job cuts announced 18 months ago.
Pfizer France seems to have been hit especially hard by the global restructuring drive, and Pfizer have already cut 243 jobs in the country from its medical visit force and head office.
Details of the latest reorganisation have not been finalised, but it has been suggested the cuts will affect Pfizers sales force and jobs at its Paris headquarters.
2008 has seen thousands of jobs cut across big pharma, particularly in salesforces.
Pfizer says its move is the result of increased drug development costs, a slow down in R&D productivity, and mounting pressure on healthcare systems to contain cost.
It has also been influenced by the forecast drop in sales for the company, due to several upcoming patent expiries on several of Pfizer’s drugs, including flagship anti-cholesterol drug Lipitor, Alzheimer’s product Aricept, marketed with Eisai, and the glaucoma drug Xalatan.
Pfizer estimates its sales in France will drop from around 1.4 billion euros to just over 800 million during this period, and it seems sales staff looking after the expiring products are likely to go.
Pfizer France is the third biggest affiliate of the global group after the US and Japan. It has three manufacturing sites in its French operation – the Loire valley, in Alsace and Brittany.
This recent set of cuts follows Pfizer’s announcement this year that it will be operating under a new business unit model, with efficiency requirements meaning operations will be carried out at a European rather than country level.
In contrast to the UK and the US, the law in France around redundancy makes it harder for companies to lay off large numbers of employees at a time, and regulation there aims to protect employment.
But unions in France showed surprise at the number of the cuts announced, and then concern that Pfizer has not revealed to true extent of job losses ahead, saying it could now be possible that more than 700 will go.
Gerard Bouquet, vice-president of Pfizer France told the French Press Association that no cuts would be enforced before December 2009 and that more information would come before the end of June.
The picture in the UK
David Gillen, the chief medical director at Pfizer UK, said it was necessary to maximise opportunities and provide focus across its very wide portfolio, all the time trying to grow the business.
He added: “The R&D pipeline has been challenging, as in every company, and we need to think differently. The market is getting more hostile and we need to do things differently.”
He indicated further announcements would be made in the New Year, which could have an impact for staff in the UK.
Related Content
PEP-Therapy and Institut Curie’s cancer drug trial approved in France
PEP-Therapy and Institut Curie have been granted approval from the French National Agency for Medicines …
MSD’s proposed sale of French manufacturing plant puts over 200 jobs in jeopardy
MSD has announced its plans to put its Centre de Mirabel production facility in Riom, …
Gilead to lay off one fifth of sales force
Gilead Sciences is preparing to lay off around a fifth of its salesforce in anticipation …
