Pfizer to cut more jobs and close factories

By Aaron Smith, CNNMoney.com


NEW YORK (CNNMoney.com) -- Pharmaceutical giant Pfizer said Tuesday that it will reduce its staff by another 6,000 jobs and shut down eight factories in its ongoing mission to cut costs in the wake of its merger with Wyeth.

Pfizer (PFE, Fortune 500) said the global job reductions will occur "over the next several years" and the factories will be closed by the end of 2015.

This is just the most recent wave of cuts and closures, as the company aims to reduce costs by up to $5 billion by the end of 2012.

The eight factories being closed in this round are located in the United States, Puerto Rico and Ireland, according to the drugmaker.

More specifically, the drugmaker said it would shut down manufacturing at its Richmond, Va., plant and at two cities in New York: Rouses Point, near the Canadian border, and Pearl River near New York City, where Pfizer is headquartered. However, the drugmaker will continue to conduct research and development at the sites in Richmond and the Pearl River plant, which it acquired from Wyeth.

"This is unexpected and does not bode well for local or global economic recovery," said C. Scott Vanderhoef, chief economic officer for Rockland County, where Pearl River is located.

Vanderhoef said that Pfizer plans to eliminate 1,250 jobs at the Pearl River plant by 2014 - a number that the company confirmed.

Pfizer's factory closures include shut-downs in three Irish cities -- Loughbeg, Shanbally and Dublin -- as well as two cities in Puerto Rico -- Caguas and Carolina.

In addition, the company plans to "reduce operations" at six other plants in the U.S., Puerto Rico and Ireland, as well as in Germany and the United Kingdom.

Pfizer completed its acquisition of Wyeth on Oct. 15, 2009. Since then, the workforce has been reduced by 6,900 workers, primarily in manufacturing and R&D, according to a May 4 announcement.

Pfizer spokesman Ray Kerins said the total current workforce is approximately 113,800, down from 138,000 people that were employed by both companies in 2008. He said the company plans to reduce the total to 107,800 in five years.

"We obviously take these reductions very seriously and want to make sure our colleagues that are impacted by this are treated with dignity and respect," said Kerins. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 16,408.54 -16.31 -0.10%
Nasdaq 4,095.52 9.29 0.23%
S&P 500 1,864.85 2.54 0.14%
Treasuries 2.72 0.08 3.19%
Data as of 10:11pm ET
Company Price Change % Change
Bank of America Corp... 16.15 0.00 0.00%
Facebook Inc 58.94 0.00 0.00%
General Electric Co 26.56 0.00 0.00%
Cisco Systems Inc 23.21 0.00 0.00%
Micron Technology In... 23.91 0.00 0.00%
Data as of Apr 17
Sponsors

Sections

General Mills has scrapped a controversial change to its fine print that some read as eliminating customers' right to sue the company. More

Obamacare sign ups hit 8 million, though final enrollment remains to be seen. More

Office for iPad move is a symbolic victory for Nadella's Microsoft, but the company is still weighed down by many of the same old issues. More

Schwinn, Trek and Cannondale are all iconic American bicycle brands. But none of them are made in the United States. More

As Detroit moves closer to reaching a bankruptcy deal, retired civilian workers are poised to be left worse off than firemen and police officers. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.