Merck plans to eliminate 7,200 jobs by the end of 2011 as part of a new restructuring program aimed at lowering overhead and becoming more competitive. As part of the program, Merck will streamline management layers by eliminating about 25% of senior and mid-level executives. The company currently employs about 56,700 people. The new job cuts are in addition to the 2005 restructuring program that eliminated 10,400 jobs.
According to a company statement, the new job cuts are expected to produce savings of $3.8 billion to $4.2 billion from 2008 to 2013 and will cost between $1.6 billion and $2.0 billion through the end of 2011, when the program is expected to be complete.