Merck to cut 15% of workforce

Merck & Co. Inc. (NYSE:MRK) reported 4Q09 earnings and announced plans to reduce headcount by about 15% by the end of 2012. Merck said the cuts, in addition to the elimination of about 2,500 vacant positions, would account for about $2.6-$3 billion of the estimated $3.5 billion in annual savings expected from last year's acquisition of Schering-Plough Corp. At Dec. 31, 2009, the combined company had about 100,000 employees. The cuts will primarily come from the elimination of duplicative positions in sales, administrative and headquarters organizations, as well as the consolidation of manufacturing facilities and R&D operations. Merck plans to announce further steps in its restructuring program this year (See BioCentury, March 16, 2009). ...