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Latest News
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2/2/2012
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AstraZeneca to axe 7,300 jobs in next two years as it seeks £1.6bn savings by 2014
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The drugs company AstraZeneca has said it plans to cut 7,300 jobs in the next two years as it battles against falling profits and bears the brunt of an increase in competition within the pharmaceutical industry.
An extensive restructuring programme, the company's third since 2007, could see as many as 300 jobs go in the company's research and development team at its site in Alderley Park, Cheshire, its largest site employing 3,000 people. The latest cuts would add to the 21,600 jobs lost since 2007.
The GMB union warned that cutting R&D would have damaging consequences for the UK economy, yet AstraZeneca plans to cut further jobs at other sites in the country as it strives to save £1.6 billion by 2014. The company also has sites in Avonmouth near Bristol, Brixham in Devon and London, with staff employed through affiliated companies in Liverpool, Cambridge and Luton.
A sharp fall in pre-tax profits for the three months to the end of December last year, to $2.05 billion from $2.28 billion in 2010, may have contributed to the decision to make cuts but intensified competition in the sector has undoubtedly been behind the fall in profits.
The company's revenue streams will be further squeezed by the loss of the patency on some of its biggest products, notably the anti-psychotic treatment Seroquel.
“Disciplined execution of our strategy has delivered a good performance in 2011, in the face of intensified pricing pressure and generic competition,” said AstraZeneca 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.”
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