Pharmaceuticals giant AstraZeneca is to cut 1,150 jobs from its sales force in the US, as part of its "ongoing strategy to operate its business more efficiently to best serve patients".
The mass lay-off amounts to 24% of its sales organisation stateside and is expected to cost the firm between $50m and $100m in restructuring costs.
These will be charged in the fourth quarter of 2011, but are excluded from the company's core financial measures, Astra assured, so as to not affect earnings guidance for the full-year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"These are difficult decisions that impact valued employees," said Rich Fante, president of AstraZeneca US.
"The changes we are making, however, will help us deliver better results for our business and, most importantly, continue delivering on our mission of patient health."
Astra added that the move is important to the second phase of its restructuring programme, initially announced in January 2010.
"Employees will have the option to self-identify to potentially leave the company," the firm said.
BC
-
8 of the best houses for sale for around £1 millionThis week: the best houses for sale for around £1 million – from a wing of a Grade II-listed Victorian manor house in Sunderland, to a brick-and-flint cottage in Cley next the Sea, Norfolk
-
Starling Bank to scrap 3.25% interest rate from popular current account within daysStarling is to remove the generous 3.25% it pays on current accounts from next week – what does this mean for customers and should you move?
