Pfizer announces 10,000 job losses

Pfizer has announced a reduction to its workforce as part of a new plan aimed at improving performance, repositioning the company for future financial success and increasing total return to shareholders.

As part of its cost-reduction plan, the company will eradicate ten per cent of its global workforce by the end of 2008, amounting to 10,000 jobs lost. These positions will be eliminated in US sales, and a reduction of European field force by over 20 per cent, subject to consultation and labour laws.

The company reports that this move, together with other strategic actions, will maximise the company’s revenues from its existing product portfolio, enable investment in its internal pipeline and externally licensed products, reduce its cost base and allow the company to construct smaller and more accountable operating business units.

Dr John LaMattina, head of global research and development at Pfizer, said: “These and other actions will allow us to reduce costs in support services and bricks and mortar and to redeploy hundreds of millions of dollars into the discovery and development work of our scientists.”

The company adds that it will do all that is possible to offer assistance to employees affected by these job losses and attempt to work within communities to alleviate the effect of these job losses.

Bloomberg reports that shares in Pfizer fell one per cent to $26.95 (13.6 pounds) at 16:25 local time on the New York Stock Exchange, having previously risen ten per cent in the year to January 19th 2007.