Pfizer to lay off 10,000 to cut costs |
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Mon, 22 Jan 2007 18:49
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NEW YORK (AFX) - Pfizer Inc. announced Monday it will cut 10,000 jobs, as the world's largest drugmaker seeks to cut costs by up to $2 billion a year amid fierce competition from generic drugs.The company said it will close three research sites in Michigan and two manufacturing plants in New York and Nebraska. It may also sell another manufacturing site in Germany and close research sites in Japan and France.It's the second time in two years that Pfizer has announced a major cost reduction plan in order to combat the loss of about $14 billion in revenues this year due to expiring patents on key drugs. The company is at risk of losing 41 percent of its sales to generic competition between 2010 and 2012, according to one analyst.Analysts are skeptical that Pfizer's crop of current and pipeline products can generate enough sales to compensate for the lost revenue. Pressure on Pfizer has intensified since safety issues forced it to halt development of the star drug in its pipeline, which was slated to replace Pfizer's best-selling drug Lipitor as it loses patent protection as early as 2010.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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