Merck to cut over 1000 jobs in Germany
Merck has announced it will be cutting 1,100 jobs in Germany by the end of 2015, as part of the company’s “Fit for 2018” business transformation program spanning all Merck’s businesses and regions in order to secure long-term competitiveness.
Pressure has been put on the German company’s profit margins due to falling European demand and a slowdown in emerging markets, which has forced Merck to resort to cost-cutting measures. Merck has stated that all the positions will be reduced in a “socially acceptable manner, mainly through voluntary-resignation and early retirement programs across all divisions and functions”.
Merck currently employs 10,900 staff in Germany, and around 40,000 worldwide. The company has yet to finalise negotiations on job reductions in other countries, such as France and Spain.
“We have had constructive discussions with Works Council members for the past several months and are happy to say that we now have a roadmap that will position Merck Germany in such a way that the company is prepared for the challenges we will face. This agreement is a positive development for Merck’s future and a clear commitment to Germany. Now, we need to consistently implement the measures and continue moving ahead with the changes in our company.”
Kai Beckmann, member of the Executive Board and responsible for Human Resources at Merck.
On the other side of the coin, Merck also plans to invest a total of EU €250 million at their global headquarters in Darmstadt, Germany and other sites within Germany during the next two years.
Merck to cut 1,100 jobs (Financial Times)
Merck KGaA to cut 1100 jobs in Germany under cost-cutting initiative (First word pharma)
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