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AstraZeneca to cut a further 7,300 jobs AstraZeneca to cut a further 7,300 jobs
(about 2 hours later)
AstraZeneca has announced a further 7,300 job cuts over the next two years as part of a new restructuring programme to save $1.6bn (£1bn) a year. Anglo-Swedish drugs maker AstraZeneca has announced a further 7,300 job cuts over the next two years as part of a new restructuring programme.
The job cuts come on top of a programme of 9,000 job losses started in 2010. The GMB Union has said 250 to 300 of the cuts will be in R&D at the firm's site in Alderley Park, Cheshire.
It also said there would be unspecified back office cuts at other UK sites.
AstraZeneca announced a fall in pre-tax profits for the three months to the end of December to $2.05bn (£1.32bn) compared with $2.28bn in 2010.
The UK's second-largest drugs firm has 61,000 staff globally of which 8,000 are in the UK.The UK's second-largest drugs firm has 61,000 staff globally of which 8,000 are in the UK.
The Anglo-Swedish firm also announced a fall in pre-tax profits for the three months to the end of December to $2.05bn compared with $2.28bn in 2010. It has sites around the UK at Alderley Park, Macclesfield, Avlon near Bristol, Brixham in Devon, and London, and employs staff through affiliated companies in Liverpool, Cambridge and Luton.
It is the third restructuring programme the company has carried out since 2007. AstraZeneca cut 12,600 positions between 2007 and 2009. The Alderley Park site is the company's largest, employing about 3,000 people.
It began a second programme in 2010 which the firm said would lead to the loss 9,000 jobs by 2012. Restructuring
The company said it was consulting on the latest round of job cuts. The latest cuts are part of the third restructuring programme the company has carried out since 2007, and is designed to save $1.6bn a year by 2014.
In its first round of restructuring AstraZeneca cut 12,600 positions between 2007 and 2009.
It began a second programme in 2010, which the firm said would lead to the loss of 9,000 jobs by 2012.
The GMB union said shedding R&D jobs would damage the UK economy.
"These cutting edge R&D [research and development] jobs are both well paid and essential for a thriving UK economy," said Allan Black from the GMB.
CompetitionCompetition
AstraZeneca blamed increased competition for the fall in profits and warned that revenues may fall when it loses patents on some of its key products. AstraZeneca blamed increased competition for the fall in fourth quarter profits.
"Disciplined execution of our strategy has delivered a good performance in 2011, in the face of intensified pricing pressure and generic competition," said chief executive David Brennan."Disciplined execution of our strategy has delivered a good performance in 2011, in the face of intensified pricing pressure and generic competition," said chief executive David Brennan.
"While the further expected losses of market exclusivity make for a challenging 2012 outlook, we remain committed to a long-term, focused, R&D based strategy and today have announced further steps to drive productivity in all areas," he added."While the further expected losses of market exclusivity make for a challenging 2012 outlook, we remain committed to a long-term, focused, R&D based strategy and today have announced further steps to drive productivity in all areas," he added.
The company is also facing the loss of patents on some of its products and has not yet released alternative money earners.
"That's really why AstraZeneca are in the position there are now, they don't see anything coming through soon enough to have an impact," said David Phillps from the Royal Society of Chemistry.
"It's a fact that the easy targets, in the body, for the production of drugs have, essentially, all been used up," he added.
AstraZeneca also said it would begin a $4.5bn share buy-back scheme and increase its dividend by 10%.AstraZeneca also said it would begin a $4.5bn share buy-back scheme and increase its dividend by 10%.