real-time news and commentary for investors
Tuesday, Oct 1
Merck announces multibillion restructuring program
- Merck (MRK) announces an initiative to "sharpen its commercial and R&D focus" in order to "better target its resources behind those opportunities that have the potential to deliver the greatest return on investment."
- The company is looking to reduce annual operating expenses by ~$2.5B by the end of 2015 with ~$1B to be realized by the end of next year.
- MRK will cut its workforce by around 8,500 positions — that's in addition to the 7,500 positions the company has already cut.
- The restructuring will cost $2.5-3B, around two-thirds of which will be recognized as cash outlays.
- FY13 non-GAAP guidance reiterated at $3.45-3.55. (PR)