AstraZeneca Cuts 1,150 U.S. Sales Jobs
Although just last week there was news about the unemployment rate which has finally reduced, in the following days several companies have announced plans to cut jobs. Now, AstraZeneca adds to their number with 1,150 U.S. sales jobs.
AstraZeneca, Britain’s second biggest drugmaker, said that it is planning to cut some 1,150 jobs in its sales representative and management departments in United States. This is the second wave of cuts the company initiates over the past few months. The company has already announced 400 jobs cut in October.
Worldwide the company has initiated a cost-reduction program that involves 8,000 layoffs which will take place over the following years.
The 1,150 jobs will help the drugmaker to save $50 million to $100 million in the fourth quarter. At the same time, since restructuring costs will not be included in the company’s core earnings measure, these cuts will not be included in the overall earnings for 2011.
President of AstraZeneca U.S., Rich Fante, explains that it was quite a difficult decision to activate these reductions. The cuts represent about 24 percent of the drugmaker’s U.S. sales department. Although there are no details regarding exactly where the job cuts will take place, officials with the company mentioned that the impact of these reductions will range by geography.
Fante said: “The changes we are making, however, will help us deliver better results for our business and, most importantly, continue delivering on our mission of patient health”.
It’s important to point out that most of the layoffs have been generated by the financial turmoil on the European markets which is forcing companies to adjust their costs to be able to withstand the shock.
Just recently the Labor Department announced that the U.S. unemployment rate dropped to 8.6 percent, reaching the lowest level in two years. Millan Mulraine, senior macro strategist at TD Securities, believes “the economy is continuing to head in the right direction”. But, at the same time, “the ultimate test of the sustainability of the recovery is for the economy to create a sufficient number of jobs to sustain a consumer-led rebound in activity”.
Over October and September there have been 72,000 jobs created, but the increase can be explained as companies in retail have been preparing their staff for the holiday season.