AstraZeneca restructure to affect 7,300 jobs
2 Feb 2012 by Evoluted New Media
Following the publication of their full year 2011 results, AstraZeneca have announced a restructuring programme that could deliver annual benefits of $1.6 billion, but affect 7,300 jobs globally.
The company estimate that approximately 3,750 positions will be affected in the selling and general administrative section. They have simplified the global commercial organisation by reducing the number of sales and marketing regions from five to three, and clustering smaller countries. In parallel, they will accelerate the use of new customer channels to provide innovative, high quality services that better meet the changing needs of healthcare professional at lower unit costs.
Approximately 2,200 positions in the research and development section stand to be affected. They hope to create s simpler and more innovative R&D organisation with a lower and more flexible cost base. Excess capacity in certain R&D functions will be reduced and the company will match resources to their more focussed R&D portfolio.
The focus for change in R&D will be in the area of neuroscience therapy – the company will combine their internal expertise with innovative external science, resulting in a new ‘virtual’ neuroscience Innovative Medicines unit (iMed). The unit will consist of 40-50 AstraZeneca scientists conducting discovery and development externally through a network of innovative partners in academia and industry globally.
Around 1,350 jobs in the operations function could be affected by changes which aim to improve the efficiency and effectiveness of the company’s supply chain. Some manufacturing activity will be outsourced, particularly in the production of active pharmaceutical ingredients.
“AstraZeneca remains fully committed to our long-term focussed innovation-driven biopharmaceutical strategy,” said chief executive officer David Brennan. “Today’s initiatives should be seen in the strategic context as we continue to reshape our business to improve productivity and innovations and with it our long-term ability to compete in a rapidly changing healthcare environment.”
“We are acutely aware that these decisions will affect many employees and we will strive to support our people as we implement these changes.”
