Pfizer Drug Co Cuts 8,000 Jobs Closes Six Sites Reorganizes

2009-11-09T09:57:00.000-08:00

By James Rickman, SVS

The world's biggest drugmaker, Pfizer said Monday it is closing six of its 20 research facilities, reorganizing and consolidating others, and cutting the jobs of roughly 15% over 8,000 workers of its scientists and support staff. The job cuts accelerate internal cost controls that mirror other companies also reporting better than expected earnings through productivity reorganization as the U.S. consumer markets remain anemic.

The moves are part of Pfizer Inc.'s massive reorganization after buying drug and vaccine maker Wyeth just 3 1/2 weeks ago. The executives heading the combined research operation that integrating and reorganizing the two companies' laboratories will boost research productivity and efficiency and save money as well.

In statements released, Monday (November 9, 2009) Pfizer reports as part of the consolidation of research sites, Pfizer will significantly reduce R&D activities at some of its sites. The company will move a number of functions from Collegeville, Pa.; Pearl River, N.Y.; and St. Louis to other locations and will discontinue R&D operations in Princeton, N.J.; Chazy, Rouses Point and Plattsburgh, N.Y.; Sanford and Research Triangle Park, N.C.; and Gosport, Slough/Taplow, U.K. In addition, Pfizer will consolidate R&D functions from its New London, Conn., site to its nearby research facility in Groton, Conn.

New York-based Pfizer will eliminate about 35% of the 16 million square feet of research space it now has around the world. It will now have five key research centers, each focused on a couple of specific disease areas, plus nine other laboratories with specialized research capabilities.

Research operations in Princeton, N.J.; two sites each in New York and North Carolina and one in the United Kingdom will be closed. Pfizer could not say how many scientists and support staff the combined company has in research and development.

Savings from the job cuts and the plant closures will be poured into research on key diseases Pfizer is targeting, including Alzheimer's and other neurological diseases, cancer, pain and inflammation, diabetes and infectious diseases.

"We essentially will have a portfolio up and running on the diseases that we care about this year," Martin Mackay, president of research and development for pills and other traditional medicines, said in an interview.

That's an unusually fast transition for an already-huge company that just completed a $68 billion acquisition on Oct. 15. By comparison, when Pfizer acquired Warner-Lambert Co. in 2001, it spent the next two years making a series of decisions about what to do with different parts of the research organization. It still hadn't finished the integration of the two companies when it bought another drugmaker, Pharmacia Corp., in 2003.

Moving quickly to eliminate uncertainty for employees is essential for maintaining research productivity and innovation, as well as "employee dedication," said Mikael Dolsten, president of research and development for vaccines and biotech drugs.

About Author
Mr. Rickman is a respected analyst, innovative expert in business content and web development services with over 30-years experience, published worldwide. He is also the author of several books including Eight Billion People. Mr. Rickman holds advanced business and technical degrees. For more information visit http://www.sustainablevirtualbiz.com/ or call (503) 621-4953.

Pfizer Drug Co Cuts Over 8,000 Jobs Reorganizing

Pfizer Drug Co Cuts 8,000 Jobs Closes Six Sites Reorganizes