AstraZeneca set to cut jobs
February 3, 2012
DRUG giant, AstraZeneca has
responded to an 8.3% dip in its
fourth-quarter profits by saying it
will cut 7,300 people off the payroll.
The fourth quarter results saw the
company’s net profit down to
US$1.49b compared to US$1.62b
year-on-year, whilst the company’s
revenue was US$8.66b, compared
to US$8.62b a year earlier.
The cuts are part of a program of
“restructuring initiatives” designed
to deliver an estimated US$1.6
billion in annual benefits by the
end of 2014.
“AstraZeneca remains fully
committed to our long-term,
focused, innovation-driven
biopharmaceutical strategy,” said
AstraZeneca CEO, David Brennan.
“Since 2007, when we announced
our first major restructuring program,
we have taken decisive steps to
improve returns on investment,
recognising that this demands
concerted, enterprise-wide action.
“Today’s initiatives should be
seen in this strategic context as we
continue to reshape our business to
improve productivity and innovation
and with it our long-term ability to
compete in a rapidly changing
healthcare environment,” he added.
Restructuring initiatives will see
AstraZeneca ditch its Canadian
research facility in Montreal, and
cut jobs at its Swedish facility,
opting instead to create a new
“virtual” neuroscience Innovative
Medicines unit (iMed) made up of
a small team of around 40 to 50
AstraZeneca scientists.
Other changes include a reduction
in its sales and marketing regions
from five to three, as well as
clustering of smaller countries,
however the company has said that it
will boost new customer channels
worldwide including digital
technology and the use of call
centres for sales and medical advice.
In addition AstraZeneca said it
will outsource more of its
manufacturing activity, particularly
in relation to the production of
active pharmaceutical ingredients.
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