Poor Richard Clark, a lifelong Merck employee who has risen to CEO. He will have to retire at age 65 in less than six years and his swansong will be the management of Merck through three of its biggest crises...... Vioxx, generic Zocor and downsizing.
Analysts expect his plans, including significant job cuts and other cost-cutting, to be announced on Dec. 15, when Merck holds its annual analyst conference to discuss its products and prospects.
Even the Merck spinners are preparing everyone for the bad news: "We're certainly considering a variety of options that will help improve our fundamentals," company spokeswoman Amy Rose said Friday.
Clark has kept a low profile, but last month took the unusual step of speaking to analysts during a quarterly conference call, saying, "We must improve our performance over the long term."
He has been making rounds, lunching with analysts who cover Merck, impressing some with his open-mindedness.
In late October, he told one group he was considering diversifying into the medical device and diagnostics business, but Rose would not discuss that.
Merck started tightening its belt late in 2003, when it announced plans to cut jobs through attrition, buyouts and layoffs. By late last year, 5,100 of nearly 70,000 workers had bailed out. Two weeks ago, the company said it will eliminate another 825 jobs worldwide.
http://www.suntimes.com/output/business/cst-fin-merck07.html
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