Drugmaker Merck & Co., maker of Singulair and Gardasil, suffered a 28% drop in profits this quarter, largely due to restructuring fees and stagnant sales. The company announced today a new restructuring plan which calls for 7,200 job cuts by 2011. The announcement comes as the final stages of the 2005 restructuring, which cut 10,400 jobs, are just wrapping up. Between the two programs, Merck will have severed nearly a fourth of its workforce. The new plan looks to increase efficiency by eliminating one in four mid-level executives. Cuts will come mainly in sales, manufacturing, marketing, administration and a few even in research. 60% of the cuts will be directed overseas. Although the cuts will cost the company through the end of 2011, pretax savings of $3.8 to $4.2 billion are expected by 2013.
See "Merck announces job cuts after profit falls 28%", The New York Times, October 21, 2008