Pfizer braces for global job cuts

PFIZER Inc’s 1,800 plus Irish workers are bracing themselves for possible job losses, when the company announces global cost cutting measures next week, which could result in the loss of 10,000 posts worldwide.

Pfizer Inc, the world’s biggest pharmaceutical company, said it is considering job cuts as it faces the loss of patent protection on several key drugs. The company has more than 70 production units around the world.

Analysts at Lehman Brothers and Banc of America Securities said New York-based Pfizer may eliminate about 10,000 of its 120,000 posts world-wide.

Pfizer chief executive Hank McKinnell is preparing the company for competition from generic drug makers within two years on medicines that generate €10.8 billion a year in sales, 25% of total drug revenue.

Company spokesman Paul Fitzhenry said the company’s strategy review: “Includes all aspects of our business, including employee headcount.”

Detailed plans are currently before the Pfizer board and a “detailed strategic plan and financial forecast” will be unveiled at a meeting with stockbroking analysts on April 5 in New York.

Mr Fitzhenry said: “Any speculation about decisions is premature.”

Pfizer has extensive production facilities concentrated in the Cork area where close to 1,340 production workers are based in plants at Ringaskiddy, Little Island and Loughbeg and a shared services unit at Cork Airport.

There are 160 workers employed at the Dublin Sterile Manufacturing Plant.

The company also has a Treasury Centre and the Pfizer International Bank Europe in Dublin’s IFSC as well as other sales and administrative units.

There has been speculation that Pfizer may close one of its Irish production units.

There are a number of production units at each location, for example, there are four production units at Pfizer’s Ringaskiddy plant employing 600 people.

Meanwhile, workers at Schering-Plough pharmaceutical plant in West Cork met last night to discuss redundancy offers to 161 full-time staff.

The company want to wrap up the deal today with workers at the Brinny plant, near Innishannon. Schering-Plough said the cuts, which would leave a workforce of 545, would affect all departments.

However, most of the job losses will be in the production area. Many employees are enraged that the ratio in lay-offs will fall heavily on the processing side compared to section leaders and mid-management.

It is expected the generous redundancy terms will be accepted if the matter is put to a vote of workers.