Fifth of workforce to be cut at Cork plant

Pharmaceutical giant Merck Sharp and Dohme (MSD) is to axe 90 jobs at its Co Cork plant — almost a fifth of its workforce — over the next six months.

The company, which employs 2,300 at sites in Carlow, Cork, Dublin, Tipperary, and Wicklow, has been forced to scale back production at the Brinny facility near Bandon following a global review.

It said it has enough quantities of the drug interferon to meet current and near-future demand, and that it will also be scaling back the production of its hepatitis C drug.

The voluntary redundancies will be sought from across the site’s operations where 455 people are employed.

The shock announcement came yesterday just 14 months after the company, formerly known as Schering Plough, announced 70 new jobs as part of a €28m investment in the facility, and two years after 160 jobs were axed.

Management decided to brief staff yesterday after weekend speculation that all jobs at the plant were at risk.

Site manager Matt Corcoran said it was “extremely challenging news” for staff to absorb.

“We have committed substantial resources to investigate all elements of our business operations to identify potential cost savings, but reducing workforce was necessary and sadly unavoidable for the site to stay competitive,” he said.

“Our immediate priority now is to work with, and support, all our employees during the consultationprocess.”

In a statement afterwards, the company said the jobs loss announcement is part of continuing efforts to balance product demand within its global supply chain and manufacturing network.

“The company has determined there is sufficient inventory available for product manufactured at the site to meet both current and near-term demand,” MSD said.

The company has now begun a consultation process with staff.

The Brinny plant, formerly known as Schering Plough, was established in 1980 as an active pharmaceutical ingredient and sterile manufacturing centre of excellence.

It specialises in the manufacture of biotech products including two of the company’s most successful treatments for hepatitis C and rheumatoid arthritis, as well as drugs used in the treatment of cancer and Crohn’s disease.

The site also produces new products which are used at a global level in clinical studies.

After the 2010 job losses, managers at the plant embarked on a major cost-savings and efficiency review of its operations.

It resulted in the €28m investment last year and the creation of 70 jobs.

But last week, workers were told there had been a “change in volume mix for 2013”, which culminated in yesterday’s announcement.

One worker, who declined to be named, said it was difficult to take.

“We’ve worked really hard over the last two years to turn this place around and this is what we get — a kick in the teeth,” he said.

The products made at Brinny earn in excess of €2bn sales per year, and have approvals in over 90 markets worldwide.