Drugs group merger will eliminate 16,000 jobs

Mar 10 2009 by Peter McCusker, The Journal

THE owner of a Northumberland pharmaceutical factory has bought an American rival, creating a global giant, but at the same time said it was axing 16,000 jobs worldwide.

It is not yet clear if the job cuts announced by Merck will affect the 400 staff who work at its Cramlington plant, which has been in operation since 1975.

United States-based Merck yesterday announced a £29.7bn takeover of Schering-Plough in a deal which will bring together the makers of treatments including cholesterol drugs Zetia and Vytorin.

But Merck said the deal is likely to be followed by an eventual reduction of about 15% in the combined global workforce, which suggests some 16,000 jobs could be lost.

Both Merck and Schering-Plough have sizeable operations in the UK, with Merck employing 1,300 staff through its UK subsidiary Merck Sharp & Dohme and a UK workforce of about 1,500 at Schering-Plough.