Sunday, November 07, 2010

Genzyme starts cutting

Biotechnology company Genzyme Corp. said Friday it cut 392 positions to start the first phase of a plan to eliminate 1,000 by the end of next year.

The Cambridge, Mass., company said it cut both filled and unfilled jobs at several locations, and it told affected employees on Thursday. The company said on its Website it employs more than 12,000 people worldwide.

Genzyme said the cuts are part of a larger plan announced last May to reduce costs and make the company more efficient. They exclude positions in its genetic testing and diagnostic products and pharmaceutical intermediates business units.

The company said it will take charges totaling between $24 million and $27 million in the fourth quarter, mainly for severance benefits and facilities-related costs.

Genzyme said last month it expects to report a 2011 profit of between $4.30 and $4.60 per share on revenue of $5 billion to $5.1 billion, figures that exceed analyst expectations.

French drugmaker Sanofi-Aventis SA has offered to buy Genzyme for $69 per share, but Genzyme said that outlook makes it worth $89 per share.

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