Jobs cuts to come at Schering AG

German drugmaker Schering AG says it is reorganizing its worldwidepharmaceutical production, which is expected to result in the loss of approximately 650 jobs. Around 3,700 people are currently employed in Schering's pharmaceutical production at 20 locations in 15 countries, and the company says its intention is to concentrate this in 14 places by 2005 at the latest.

Schering said that the reorganization is aimed at reducing costs, as well as establishing a competitive production base as part of an optimal supply chain, and this new strategy should yield "annual savings running into millions of euros."

The company's plants in Germany (Berlin and Weimar), Finland (Turku), France (Lys-Lez-Lannoy), Italy (Milan) and Spain (Alcala) are to be transformed into "global production facilities," and Brazil, China, Colombia, Indonesia, Japan, Korea and Mexico are to become regional production facilities. However, Schering said that its sites in Buenos Aires (Argentina), Jena and Hamburg (Germany), Vienna (Austria) and Wayne (USA) have "no strategic corporate importance." Talks will now be held with the 650 employees affected by the move about the possibility of alternative employment inside and outside the company.