Friday, January 12, 2007

Pfizer's decimiation plans leak

Pfizer Inc., the world's largest drugmaker, may tell investors later this month it will trim annual spending by as much as $2 billion by firing 10 percent of its workforce and cutting its research budget.

Pfizer may announce the reductions in its $7 billion research budget and a workforce of about 100,000 people at a Jan. 22 analyst meeting, said Deutsche Bank analyst Barbara Ryan. Pfizer Chief Executive Officer Jeffrey Kindler said in October he would seek to go beyond an earlier plan to trim $4 billion in yearly spending by 2008.

``We believe they will target a specific amount of savings from R&D,'' said Ryan. ``R&D is the area most focused on efficiencies and process improvements rather than head count reduction.

The head count reductions, in addition to the already announced 20% US sales force cuts, will be company wide.

Among the cuts Pfizer may be announcing is a 30 % decrease in the company's sales force outside the U.S, or more than 6,000 jobs, saving $800 million in annual costs.


More at Bloomberg

Looks like drug reps are in season. Dont say you weren't warned!

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