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NEW YORK - US PHARMACEUTICAL giant Merck announced on Wednesday it would cut its worldwide workforce by 7,200 jobs by 2011 as third-quarter net profit plunged 28 per cent.
Third-quarter net profit fell to US$1.09 billion (S$1.63 billion) from US$1.52 billion a year ago, while sales fell two per cent from the third quarter of 2007 to US$5.9 billion, the company said in a statement.
Earnings per share were 80 cents, beating analysts' consensus forecast by a penny. But taking into account restructuring costs of US$612 million, earnings per share fell to 51 cents.
In an ongoing effort to reduce costs, 'increase efficiency and enhance competitiveness,' the firm said it would slash 12 per cent of its workforce by eliminating 6,800 active employees and 400 vacancies by the end of 2011.
Forty per cent of the job cuts will be in the United States but research sites in Tsukuba, Japan, and Pomezia, Italy, are also set to close by the end of 2009, a company statement said.
The restructuring comes on the heels of one announced in 2005 and completed just last month that saw Merck shed 10,400 jobs. Its workforce stood at approximately 56,700 at the end of September.
Merck forecast earnings per share for 2008 of 3.28-3.32 dollars, in line with most analysts' expectations.
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