Merck to Shed Some U.S. Sales Reps -- WSJ
October 23 2017 - 2:02AM
Dow Jones News
By Peter Loftus
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (October 23, 2017).
Merck & Co. said Friday it is laying off about 1,800 U.S.
sales representatives, or nearly 7% of the drugmaker's U.S.
workforce, in a reorganization the company says will cut costs and
shift focus to products with growth potential.
Merck is eliminating three sales teams comprising reps who
promote drugs to primary-care doctors, endocrinologists and drugs
used in hospitals.
At the same time, Merck said it would create a new "chronic
care" sales team of 960 reps who will promote its top-selling drug,
diabetes treatment Januvia, plus insomnia medication Belsomra and
drugs for respiratory diseases and women's health. Merck also hopes
to begin selling two new diabetes drugs if regulators approve
them.
Employees being laid off can apply for the new sales positions
or other open jobs at Merck, said spokeswoman Claire Gillespie.
Merck said the changes are "part of ongoing companywide efforts
to sharpen Merck's focus on innovative R&D that addresses
significant unmet medical needs and on our best opportunities for
growth, while reducing overall costs."
The layoffs are the latest in a series of job cuts by the
pharmaceutical industry, as companies grapple with patent
expirations that expose top drugs to competition from cheaper
generics. Merck has recently faced new generic competition for the
anti-cholesterol drugs Vytorin and Zetia.
In 2013, Merck said it would cut its workforce by 20% by the end
of 2015, to save about $2.5 billion in annual operating
expenses.
Merck has about 69,000 employees globally, including about
26,500 in the U.S.
Last month, Eli Lilly & Co. said it planned to eliminate
about 3,500 positions, or 8% of its global workforce, through a mix
of early-retirement offers and layoffs.
Write to Peter Loftus at peter.loftus@wsj.com
(END) Dow Jones Newswires
October 23, 2017 02:47 ET (06:47 GMT)
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