AstraZeneca plans to double job cuts
AstraZeneca PLC said it will more than double previously planned job cuts as it revealed Thursday that quarterly profit fell 12.5 per cent.
By Agencies |
LONDON: AstraZeneca PLC said it will more than double previously planned job cuts as it revealed Thursday that quarterly profit fell 12.5 per cent.
AstraZeneca, Britain's second-largest drugmaker behind GlaxoSmithKline PLC, said it will eliminate around 7,600 positions, or 11 per cent of its work force, as part of an expanded cost-cutting drive.
Net profit at the Anglo-Swedish company dipped to $1.4 billion (euro1.02 billion) from $1.6 billion a year ago despite a 10 per cent rise in revenue to $7.3 billion (euro5.31 billion) because of costs related to the acquisition of MedIummune Inc.
Sales were up due to strong contributions from best-selling products such as Nexium, Crestor and Seroquel and the company improved its full-year earnings forecast, narrowing the earnings per share range to $3.90 to $4.05 (euro2.84 to euro2.95), from the previous prediction of $3.80 to $4.05 (euro2.77 to euro2.95).
The job cuts are part of a cost-cutting drive aimed at producing more than $900 million (euro654.9 million) in annual savings by 2010.
The company announced cuts of around 3,000 positions in February, and Chief Executive David Brennan said the new losses would come from its European sales and marketing team as well as employees working in disease areas and regulatory affairs.
AstraZeneca, Britain's second-largest drugmaker behind GlaxoSmithKline PLC, said it will eliminate around 7,600 positions, or 11 per cent of its work force, as part of an expanded cost-cutting drive.
Net profit at the Anglo-Swedish company dipped to $1.4 billion (euro1.02 billion) from $1.6 billion a year ago despite a 10 per cent rise in revenue to $7.3 billion (euro5.31 billion) because of costs related to the acquisition of MedIummune Inc.
Sales were up due to strong contributions from best-selling products such as Nexium, Crestor and Seroquel and the company improved its full-year earnings forecast, narrowing the earnings per share range to $3.90 to $4.05 (euro2.84 to euro2.95), from the previous prediction of $3.80 to $4.05 (euro2.77 to euro2.95).
The job cuts are part of a cost-cutting drive aimed at producing more than $900 million (euro654.9 million) in annual savings by 2010.
The company announced cuts of around 3,000 positions in February, and Chief Executive David Brennan said the new losses would come from its European sales and marketing team as well as employees working in disease areas and regulatory affairs.
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AstraZeneca shares rose 0.3 per cent to 2,685 pence on the London Stock Exchange. Download
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