UPDATE (1/26/09): The Pfizer / Wyeth merger has been finalized and sources are reporting Pfizer will layoff 50% of Sales Reps. Click here for the latest information.
Original Post:
Abstract: Pfizer has announced a new round of layoffs. The cuts target 800 global research positions, 556 sales positions in Italy, and nearly 1,000 sales positions in France.
Details are still emerging, so check back for updates. Email a tip if you’re privy to additional information.
Pfizer Layoffs: Just the Facts
- Pfizer is laying off 800 research scientists - about 10% of it’s global research workforce – according to company spokeswoman Kristen Neese (Washington Post)
- Pfizer is laying off 556 sales positions in Italy (CNN Money)
- Pfizer is laying off nearly 1,000 sales positions in France (Biojobblog)
- If you’re in research and work in one of Pfizer’s recently restructured disease-research areas, you should be safe. [UPDATE: Apparently you aren't safe! See John's comment below.] The 6 disease areas are: Alzheimers, cancer, schizophrenia, pain, inflammation, and diabetes (NY Times)
- The scientists losing their jobs were reportedly notified yesterday, Tuesday, January 13th, 2009.
- In October ’08 Pharmalot reported that Pfizer was reorganizing into 3 new business units (primary and speciality care docs and emerging markets), and a spokesman assured Pharmalot that the restricting move would not result in Layoffs. (Pharmalot)
- Company spokesman Ray Kerins says the job cuts are “part of Pfizer’s overall plan to refocus research in a more efficient way; we’re taking a methodical approach to hit our goals…” (CNBC)
- 25,000 Pfizer jobs have been cut since 2004, including 15,000 cuts since 2007.
- The restructuring is an attempt to cut costs and generate earnings growth despite generic competition for many of Pfizer’s major medicines.
- Shares of Pfizer stock generally get a strong boost following layoffs
- In December ’08 Pfizer announced 700 layoffs in France, particularly the sales force at its Paris headquarters (MarketWatch)
Pfizer Layoffs: The Rumors
- More layoffs are expected to be announced, and the largest cut is supposed to take place over January 27, 28, and 29
- The Following Information Comes From a Thread on CafePharma on January 10th, ’09:
- DM (District Manager?) layoffs will be around 60% and reps approx 50%.
- Notifications for the DM’s are January 28th and we will also get rep layoffs too.
- We’ll have a day to digest and begin rep notifications on the January 30th.
- A laid off person can take a job after February 28th and not compromise their severance pay. The 60 day notice will begin on Feb 28th.
- DM’s will subjectively rank each of their reps in 8 catagories.
- There are 8 criteria in which you can give a rep/DM (9 criteria for DM/RMs) a 1, 3, or 5 score. So your score can range from an 8 to a 40.
- 3 number bands (ranges) are being created. If your number falls in the top band, you’re probably ok. If your number is in the middle band, you may be kept or deselected. If your number falls in the lowest band, you will be deselected.
- Here’s the catch with your ranking…you’ll never know your number. Once the DM submits the rankings, the next level manager has an opportunity to change it. Once that’s done, the next level manager will have another opportunity to change it again. If a change is made to your number, you will never know and the manager that is on the lower level will not know each other…even upon request. The only time actual performance (corpus rating) will be used, will be in tie breaks. Prior to that tie break, other factors will be used to determine your outcome…your distance to the center of your territory, etc)…so bottom line…don’t count on your performance to help/hurt you.
- Steve Brozak of WBB Securities is harshly critical of these cuts in research, and predicts Pfizer will now “acquire, be acquired or fail.” (Washington Post)
- Erik Gordon, a professor at University of Michigan Business School, predicts that this is just the beginning in a new round of layoffs at the pharma giant. (NY Times)
________________
News Sources:
NY Times | Pfizer to Cut Researchs as it Hones its Focus (1/13/09)
Reuters| Pfizer Targets 800 Research Positions (1/13/09)
Market Watch | Pfizer Shares Rise Amid Layoff Rumors (9/25/08)
The Washington Post | Drugmaker Pfizer Cutting up to 800 Jobs (1/13/09)
Market Watch | Pfizer Reportedly to Layoff about 800 Researchers (1/13/09)
Pharmalot | Pfizer Reorganizes into 3 Business Unites (10/7/08)
BioJobBlog | Company Announces it Will Cut Almost 1,000 Jobs in France (1/12/08)
CNN Money | Pfizer to Cut 556 Jobs in Italy as Part of Operating Reshuffle (1/12/09)
BNET | Pfizer Layoffs: 566 Reps; 800 R&D Staff (1/13/09)The Rumor Mill:
CafePharma | Real Facts on the Layoffs: Post Dallas Meeting
Seeking Alpha | More on Pfizer’s Layoffs
The Washington Post | Drugmaker Pfizer Cutting up to 800 JobsPhoto credit: dr xeno
{ 5 comments… read them below or add one }
D8 I hate layoffs,my dad was laid off not too long ago. Wish it would stop……
Pfizer is viewed as evil empire and has a very bad reputation in the La Jolla local biotech/pharma community. It has a rotten culture (I’m shamed to tell prople I’m working for Pfizer), too much politics. Those old Augorons, legacy Sugen people, newcomers have constant power struggle. This is a doomed company, a sinking titanic, employees here are hoping to find a life boat before it’s too late …….
Working in one of the restructured disease areas does not mean your safe, most of the lab heads in Diabetes were let go
Erik Gordon, whom you quote above, is not listed as a professor at University of Michigan Business School. You may have a mistake here.
Hi Philip,
I’ve confirmed that Erik Gordon is indeed a professor at University of Michigan’s Stephen M. Ross School of Business. Click here to read the new faculty announcement by U of M.
I took his quote from an article in yesterday’s New York Times.
Thanks for looking out, though!
Andrew S. Lennon
Managing Editor | The Daily Anchor
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