Internal restructuring
Location of affected unit(s)
Manufacture Of Chemicals And Pharamceuticals
Manufacture Of Basic Pharmaceutical Products And Pharmaceutical Preparations
21 - Manufacture of basic pharmaceutical products and pharmaceutical preparations

7,000 jobs
Number of planned job losses
Job loss
Announcement Date
28 November 2005
Employment effect (start)
Foreseen end date
31 December 2008


The leading pharmaceutical company Merck announced an important worldwide reorganisation plan which should include some 7,000 redundancies out of total 62,000 group’s employees and the closure of five of its 31 worldwide manufacturing plants, as well as one basic research site and two preclinical development sites, by 2008, with a view to realise cost savings of around $4 billion by the end of the decade. About half of the reductions are expected to occur in the United States, while the remainder will involve its worldwide operations, which include a number of locations in Europe. The reorganisation will include diversification of suppliers and the outsourcing of some of the production activities. In mid-December 2005, the company disclosed some elements of its new strategic plan and increased its cost-reduction target to some $5 billion by 2010.


  • 29 November 2005: Il Sole 24 Ore


Eurofound (2005), Merck, Internal restructuring in World, factsheet number 62731, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/62731.