Merck Plans to Cut Up to 11,830 Jobs

merckBy Linda A. Johnson

Drugmaker Merck & Co.'s second-quarter profit nearly tripled from a year ago, when about $2 billion in charges hurt results. Merck also said Friday that it will cut up to 11,830 jobs.

The maker of asthma and allergy drug Singulair and Type 2 diabetes pill Januvia said Friday that it's starting another restructuring program, which will eliminate 12 percent to 13 percent of jobs by 2015. That would amount to 10,920 to 11,830 of Merck's current 91,000 positions.

The company has been under a restructuring program since it bought Schering-Plough Corp. in November 2009 and started eliminating nearly 20,000 positions. Merck said Friday it's on track to achieve that program's goal -- $3.5 billion in annual cost savings -- by the end of 2012.

"Merck is taking these difficult actions so that we can grow profitably and continue to deliver on our mission well into the future," Chief Executive Kenneth Frazier said in a statement.

Merck's net income was $2.02 billion, or 65 cents per share, up from $752 million or 24 cents a share, a year earlier.

Revenue totaled $12.15 billion, up 7 percent. Analysts expected $11.81 billion.

Merck also raised the lower end of its adjusted profit forecast by 2 cents, to $3.68 to $3.76 per share. But it now expects only $1.95 to $2.17, including charges, down from its April forecast of $2.04 to $2.39 per share, including one-time charges. It expects $1.59 to $1.73 in charges during the year, for restructuring, acquisitions and other items.

Favorable foreign exchange rates gave a 4 percent boost to revenue. Merck's top-selling drugs were Singulair at $1.35 billion, and Januvia and combination diabetes pill Janumet, which together brought in $1.04 billion.

Prescription drug revenue totaled $10.36 billion, up 7 percent. Veterinary medicines brought in $802 million, up 10 percent, and consumer products such as Coppertone sun care items brought in $541 million, down 1 percent.

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gmydogbud

Thought that there would be more jobs not less, when the Government Kept The Buss Tax Cuts, In Place!

July 30 2011 at 7:37 AM Report abuse rate up rate down Reply
alfredschrader

I came up with software for making a headcold vaccine. Such a vaccine would mean you will never get another cold again. Merck isn't interested. Go figure....Alfred-

July 30 2011 at 7:11 AM Report abuse rate up rate down Reply
barney

very interesting.........and I've got Express-Scripits telling me they are out of my blood pressure med.
Of course if my employer finds out I'm on the med they can fire me under DOT regulations.
oops they found out and now I'm a 59 year old without a job or med insurance.

July 30 2011 at 6:57 AM Report abuse rate up rate down Reply
bp233

Sorry to see the jobs go, we don't need more unemployment, but if they don't need the employee, you sure cant pay them to just stand around. A profitable Co. or government dont throw money. This was aired on NBC and I cant get it off my mind, dont consern Merck, but if you have time take a look.
www.youtube.com/watch?v=PiFfZu0kIXo

July 30 2011 at 6:50 AM Report abuse rate up rate down Reply
ksjblack

People,I hope no one is believing thier lies.I only reason that they are cutting that many jobs is very siMple.CORP.GREED.

July 30 2011 at 6:10 AM Report abuse +1 rate up rate down Reply
alexiahampton7

the drug companies do nothing effective in the way of true research in finding real cures for catastrophic diseases like cancer, alztheimers, Parkinsons, etc.... yes they get tax breaks & grants for pretending they do .... but all they really do is to take each others medicines & tweak them until they very easily come up with something similar sold as a generic.

When "anthrax" was a huge concern after 9/11 terror attacks..... noone had or could come up with a cure for the highly deadly anthrax virus. Do you know who quickly came up with a cure? NOT THE DRUG COMPANIES. The U.S. Government was ordered to quickly do the reasearch & come up with a cure..... and THEY DID!

The government can do the same for cures for cancer, parkinsons, alztheimers, etc... if the government would fund the government for doing so.

The pathetic lowlife republicans & very dangerous tea party platforms will not allow this to ever happen because they hate the government & they do not care that the average "little people" need to be protected from the GREED of corporate conglomerates & the oh so wealthy powerful who got rich by screwing the middle class & the poor.... before they eliminatede most of the middle class.

July 30 2011 at 4:21 AM Report abuse +4 rate up rate down Reply
2 replies to alexiahampton7's comment
chi610

Exactly, you don't know how close you are to the real truth. I'm a retired Nurse & disabled widow of a Physician, & as long as there is money to be made, there will only be cures when it is profitable to do so, or the outcry is so loud they are FORCED to throw out a bone..of course by that time, the rationalization is that there are others out there equally as profitable to replace the one they let go of, & guaranteed MORE to come in the future. Think about what has happened when a cure is hailed & overused & over marketed. Everything sails along for a decade or two, as the virus & bacteria grows resistant, 'supposedly dormant,' stronger, & comes back with a vengeance...more powerful than the original & more lethal each & every time. It's the nature of the beast, it's science & biology & the essence of life itself as we know it, in it's simplest & most profound form of natural order. So we back-pedal; ground, time, & lives lost are the cost of doing business under the pressure & self- delusion more will/have to be saved, until either we die out completely, or we frantically find something else to misuse & exploit. We're living in a hamster wheel, doing it to ourselves, & the most immoral, inhuman, & egregious of all, is that they KNOW it & it's coming right to them on the platter WE hand them. Overtime, cash money, importance, dependance, & chaotic searches for hope & life by the afflicted, gives them a power of such magnitude it's unholy & rife with the possibility of doing good versus succumbing to "making a little off of it all, for whatever the reason," getting some papers published, & the prestige of being celebrated as someone special..immortalization versus obscurity. Everyone knows these feelings on some level & they are nothing short of intoxicating. The egos in this field are enormous to begin with, otherwise no one would enter into this kind of life, as no one could tolerate the level of suffering they see..that's why it's literally trained & beaten into them in Medical Schools to wash out the weak & protect the strong with promise. To cut into human flesh for the first time is both frightening & a rush. It's a privileged life, & with that comes responsibility, someone is laying their lives at your feet at their weakest moments as purely as maybe they have ever acted or felt ever before. But, everyone born will become a patient at some time in their lives, & everyone will die..a fact some choose to ignore until it hits THEM, & some simply cannot do this with the grace of the everyman. Big Pharma courts, coerces, everyone it needs to, to get what it wants. Docs, Hospitals, & Washington. It bullies, leverages, & buys anyone & thing it can, it's well known & could be brought into line, but no one has done anything other than pander to date. Both parties are guilty as are both Houses. Democracy is a vote for all, enterprise is buyer beware, money. Two parties that no longer serve, postures & polarizes needs to be replaced. It's over.

July 30 2011 at 9:11 AM Report abuse rate up rate down Reply
piwobla

You seem a little pathetic yourself. Get a life douchebag !

July 30 2011 at 12:16 PM Report abuse -1 rate up rate down Reply
alexiahampton7

absolutely mom & dad...... they will shed every employee they can shed who is 50 years of age & over..... even older top producers .....they will blame it on the economy..... as soon as the older loyal capable employees are out the door.... the conglomerates will hire less capable, less experienced, less dependable 20 & 30 somethings to take their place...... In the meantime they have managed to trim the baby boomers in a way that gets them off the hook for age discrimination in an effort to keep their group insurance rates down & not pay pensions.....hello??

& thousands more baby boomers will be without a job & in the most difficult rehirable group in the U.S. due to their age.... even though they are the best & most qualified...

The greedy drug conglomerates will also take their TAX BREAKS for the new hires as they quickly hire up the younger people.... without having to deduct the number of employees they just dumped like trash.

This folks.... is another fine example of the worthless repukelican policies for the wealthy & powerful which the very dangerous tea party also advocates for. And this is another reason why the unemployment rate is so much hirer than is what is being reported...false accountability.

July 30 2011 at 4:08 AM Report abuse +6 rate up rate down Reply
1 reply to alexiahampton7's comment
chi610

Amen, Amen, and Amen.

July 30 2011 at 9:12 AM Report abuse rate up rate down Reply
Mom and Dad

Ok so this is a little off the subject, but, the Big 5 oil companies just announced a 36 billion dollar profit for the second quarter, uh, 12 billion a month PROFIT. They said it mostly came from the sale of gasoline. Funny how you can absolutely rape the public, then admit it, then announce it, then run to the bank, then do it all over again and have the Republicans protect your wild subsidies and loopholes for you that no longer really apply to your every day business dealings like they did when they were created.

July 30 2011 at 3:49 AM Report abuse +4 rate up rate down Reply
2 replies to Mom and Dad's comment
chi610

Spot on the subject, just another extrapolation of it all, and this IS OUTRAGEOUS. Not ONE peep out of Congress about this bludgening of the American PUBLIC, who puts them in office on whatever blather they say to get them elected, and then can't seem to EVER get rid of them or the entrenchment and good old boy network, Remember the first shock when oil prices shot up at the start of the war, and Congress made a smattering of 'we should do something about this?' It just went away as quickly as gas went up so out of the blue.....and not a darn thing happened other than massive mandatory closings of car 'Mom and Pop' dealerships (some in families for generations) by the GOVERNMENT who told them they could no longer do business....then they closed Pontiac manufacturing completely....and began bailing out and subsidizing the likes of Chrysler, who needs this about every 5 years or less which is beyond ridiculous, and always makes a piece of junk that appears flashy and never delivers....then things get quiet for a bit, and costs climb again and this time Congress offers NOT ONE WORD on TV news of the least bit of sympathy or outrage. NOT one, not even for an election year coming. This is incredibly odd at the least, and criminal at it's worst. What IS going on here, really, just for once? Funny before all of this, how the oil companies always seemed to manage to have some sort of "issue" right before EVERY holiday...missing none and NEVER going back to the norm prior to this invented "issue" and to add insult to injury, they hit summer time for good measure making it prohibitive to afford any kind of travel...never returning yet. I sold my car, had always topped the tank for no more than 5.00, and told the Arabs AND Big Oil to kiss my rear end....I'm staying at home, reinventing my priorites on my terms, and changing my life to suit ME rather than the ENDLESS LOAD OF BS from these Companies and a really lame government that is eating it's own to their last nerve. I freed my dependence from what I was TOLD I "needed" to "live the American way" and NEVER looked back. US OIL COMPANIES as well as the Arabs and the Cabals of shame, which is too HUGE for me OR it's own good....ie: the Bush's and their ties to oil deals in the Middle East and EVERY OTHER POLITICAL player out there, It was done, it feels fantastic, and then some foreign oil company through some back door deal in Washington, is in OUR OCEAN drilling, and just decimates our ENTIRE EAST COAST the likes of which has never been seen, and STILL isn't over...not for the helpless animals left to die, suffer and mutate to exist; or the families, making their livings there for generations, leaving them sit., promising them everything and giving them nothing but redtape hell...the hiked up food, transportation, and every other trumped up fee, tariff, reason imaginable to add to the burdens we now carry. So WHAT IS REALLY GOING ON???!

July 30 2011 at 6:46 AM Report abuse rate up rate down Reply
william p.

Hey M & D! Who do you thinks gonna pay when and IF the Govt does decide to un-do the tax breaks to big oil? I am and you are. Thats who. There isn't a single company in all the world whos gonna just eat those profit losses. Prices WILL go up and workers will be let go. I hate those tax breaks just as much as you do. General Electric corp. gets the same tax breaks. They paid not a single dime in taxes last year. Where's the OUTRAGE? There isnt any and I'll tell you why. George Bush had no hand in THAT cushy set-up thats why. The Bleeding heart Obama-minnions cant blame that one on Bush so therefore its not a problem.

July 30 2011 at 8:11 AM Report abuse rate up rate down Reply
Mom and Dad

Wow, what a goal, eliminate 20,000 jobs --- and how much of a bonus will you get when you do that?

July 30 2011 at 3:43 AM Report abuse +1 rate up rate down Reply
jnbgd45

Hey the drug companies have plenty of money. They provide food to doctor's office staffs all the time. Not Ham sandwiches, but practically catered meals. They put on "educational functions" at the BEST restaurants where the meal choices are usually the top 2-3 most expensive items on the menu. When I went to take my date to this restaurant where I had atteneded one of the 1/2 hour educational forums we had to leave because one meal would have been over $80. There were about 30 people attending that forum when I went offering the same meals. And how about the ones that provide an "open bar", ALL in the hopes that the medical professionals will use the drugs they make instead of the competitors drugs. Then you hear about the record profits and the rediculous salaries the drug company's CEO/Presidents make not to mention the Golden parachutes and retirements that include stock options and full insurance coverage. Meanwhile the people being laid off and losing their jobs cannot afford to have insurance or pay for the medications the drug companies have been pushing the doctors to use. The poor people then show up at the hospital ERs making healthcare more expensive for all of us; because if they can't pay for services the doctor can turn them away, but for most hospitals that is illegal to turn away patients. Then if they can't afford the needed medications they show up again at the ER with continued or worsening medical problems. And we don't want these record setting rich companies and their rich owners and leaders to pay more taxes????? RIGHT!!!!

July 30 2011 at 2:51 AM Report abuse +3 rate up rate down Reply
1 reply to jnbgd45's comment
chi610

Oh, do you ever see it for what it is. Kudos.

July 30 2011 at 9:16 AM Report abuse rate up rate down Reply

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