Merck to Cut 17,500 Jobs by 2012

Merck & Co. (Whitehouse Station, NJ) has announced restructuring plans that include reducing its companywide workforce by 15% by the end of 2012. Per the company’s 8-K filing with the US Securities and Exchange Commission, the company also will eliminate 2,500 currently vacant positions, which could mean a total of 17,500 layoffs.

Merck says it will achieve these reductions by eliminating duplicative positions in sales, administrative, and headquarters functions, and by consolidating manufacturing plants and research and development operations.

These layoffs are a part of the company’s ongoing cost reduction initiatives since Merck’s $41.1 billion acquisition of Schering-Plough last November. Merck expects this first phase of its restructuring program to yield annual savings in 2012 of approximately $2.6 to $3.0 billion.

Merck’s press release