Merck KGaA to slash German workforce by around 10%

Fleshing out details of its previously-announced efficiency program spanning all businesses and regions (The Pharma Letter February 26), German drug major Merck KGaA (MRK: DE) late yesterday announced that it has signed an agreement with employee representatives on a plan which will eliminate around 1,100 positions in Germany – around 10% of its total headcount in its domestic market - by the end of 2015. Merck’s shares were hardly moved by the announcement, dipping just 0.15% to 90.79 euros in early morning trading today.

The positions will be reduced mainly through voluntary-resignation and early retirement programs across all divisions and functions. As part of the agreement concerning the efficiency measures associated with the "Fit for 2018" program, Merck will refrain from forced redundancies until the end of 2017, with the exception of possible site closures and transfers that are still being assessed.

“We have had constructive discussions with Works Council members for the past several months and are happy to say that we now have a roadmap that will position Merck Germany in such a way that the company is prepared for the challenges we will face,” said Kai Beckmann, member of the executive board and responsible for human resources