Roche could suppress between 5,000 and 8,000 jobs

- Last updated on GMT

Related tags: Financial times

Roche, the Swiss pharmaceutical group, is planning on cutting
between 5,000 and 8,000 jobs, representing 8 to 12 per cent of its
employees, to reduce...

Roche, the Swiss pharmaceutical group, is planning on cutting between 5,000 and 8,000 jobs, representing 8 to 12 per cent of its employees, to reduce its operating costs and boost its financial results. According to the Financial Times, restructuring would concern not only the pharmaceutical activities, but also the Vitamins business and the administrative staff. Roche's net results of last year that rose 50 per cent to SF 8.6 bn were, for the main part, due to exceptional circumstances - disposal of Genentech and sales of LabCorp shares. Notwithstanding these elements, the result only grew 14 per cent. The pharmaceutical activity of the group also slowed down and progressed only one per cent to SF 17.68bn, whereas the world market grew 9 per cent. Roche​ is facing various difficulties, including the up-coming cancellation of the patent protection on such items as Dormicum and Ticlid in the US. In addition, sales of its leading antibiotic and of its obesity treatment have shrunk. Because of the possibility of an activity slow down in 2001, at least during the first half of the year, Roche CEO Franz Humer had warned, early March, that the operational margin of the group might be affected. After a 30 per cent fall of the stock in 2000, the group divided by 100 the nominal value of the share starting May 1st. Source: les Echos​, Financial Times

Related topics: Market Trends

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