Pfizer announces worldwide job cuts as part of restructure

Pfizer is planning thousands of jobs cuts worldwide as part of a round of cost-cutting as incoming CEO Albert Bourla prepares to take the helm.

Bourla has been promoted from his role as chief operating officer and will replace Ian Read as CEO on 1st January.

Pfizer already announced a plan in July to split into three units in a bid to streamline its business, separating its consumer healthcare business that it has unsuccessfully tried to sell.

But the company wants to make further cost-savings, and CNBC reported that the company is offering early retirement to US workers ahead of layoffs this year in an internal memo.

The company employs more than 90,000 staff and has not said how many jobs it plans to cut.

But CNBC cited an email where Pfizer spokeswoman Sally Beatty said that the company’s workforce will shrink by a “couple of percentage points”.

She said: “As we prepare for growth we are creating a simpler more efficient structure which will affect some managerial roles and responsibilities. We are offering enhancements to certain benefits to lessen this effect.”

The headcount reduction plan is part of the previously announced restructuring plan, according to the email obtained by CNBC.

“To achieve our full potential we will need to create a simpler and more efficient organisation,” she said.

The company is offering severance packages that pay a base salary of 12 weeks, plus three weeks of salary for every year of work, up to 104 weeks, according to documents cited in the report.

Employees who volunteer for early retirement will get to take any vested equity with them, health insurance and other benefits at current rates for up to three years, the company said.

People who are 55 and have at least 10 years of service may be eligible for early retirement, and employees have until November 2 to opt in to the programme

They will leave by the end of the year unless their manager asks them to stay a few months longer.

Shares in Pfizer were up sharply in pre-market trading following the announcement.

 

 

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