Merck planning job cuts: report
By MarketWatch
Last Update: 3:42 PM ET Nov. 26, 2005
NEW YORK (MarketWatch) -- Pharmaceutical giant Merck & Co. plans a restructuring involving several thousand job cuts and plant reductions as part of a turnaround plan, according to a published report Saturday.
The Wall Street Journal, citing an "an individual familiar with the situation who declined to be more specific," said that less than a half-dozen plants could be affected.
A Merck (MRK:
(, , ) spokeswoman declined to comment on the report Saturday but in a prepared statement Merck said the company was "carefully considering a variety of options to help improve our core business fundamentals and ultimately position Merck to meet the challenges the company faces now and in the future." Merck has "committed to provide details about our plans as well as milestones and metrics that can be used to evaluate our progress against them by the end of the year, and we will," according to the statement.
The plant cuts could be both inside and outside the U.S., according to the Journal, which added that the Whitehouse Station, N.J.-based company's board was briefed on the restructuring plan on Tuesday.
The changes would mark the first major move by Richard Clark, who became chief executive in May, and who has hinted Merck is due for major alterations, the paper said.
Merck shares, a component of the Dow Jones Industrial Average, hit a 52-week low of $25.50 on Oct. 7. The stock ended Friday's shortened trading day up 17 cents, or 0.6%, to $30.98. |
