Medicine Company Job Cuts

Pfizer, Incorporated, is the largest pharmaceuticalNorvasc, which treats blood pressure, Zyrtec, which
company in the world, and is known as thehelps combat allergies, and Zoloft, for depression.
manufacturer of well-known drugs that includeThese drugs make up almost one third of revenue
Viagra, which limits and prevents erectile dysfunction;sales for Pfizer, and their loss would mean a drastic
and Lipitor, which aids in lowering the blooddecrease in sales from that point on. Although Pfizer
cholesterol. Pfizer's Global Research and Developmenthad sought to appeal to the courts regarding some
department is easily the largest research andof its drug patents, profits would be plummeting to
development facility as well, with funding going asalmost 25 percent for 2005 alone regardless.
high as roughly $7.4 billion annually, and their growthAside from the loss of its patents, Pfizer also had to
substantially peaked in the 1980s and 1990s duedeal with the removal of some of its other popular
mainly to the increase in success of their drugs.drugs from drugstores, such as Celebrex and Bextra,
Despite al this however, Pfizer job cuts weremainly because these drugs have also been
announced in 2005 the company's attempts to cutdiscovered to have disastrous side effects that
back on expenses.include the increases their users' chances of suffering
Although it had been announced that most of thestrokes and heart attacks. This has also resulted in a
Pfizer job cuts would be concentrated in the salesrapid decrease in sales as other users began to
and manufacturing positions, no specified amount ofswitch to over-the-counter pain medication such as
people to be fired had ever been mentioned. Whilethe drug Advil.
Pfizer's chief executive Hank McKinnell mentions thatAfter the Pfizer job cuts and the limiting of other
only a "few" jobs will be lost, and most notably inexpenses, Pfizer hopes to save on as much as $4
their sales division, several other economic analystsbillion a year. They have officially stated that the
have already estimated that as many as 10,000 topoor local economy has nothing to do with these
11,000 people working for the company could besetbacks, and that all Pfizer companies are adopting
relieved of their jobs. This is mainly in art becausethese streamlining processes all around the world.
many of the Pfizer executives were unwilling toAlthough these job losses would undeniably be a
disclose the exact amount, stating that there may behuge blow to the economy, it also goes without
unnecessary panic and fear among its employees.saying that many pharmacies and patients would also
They are also safeguarding against otherbe suffering indirectly from these effects. With the
opportunistic rival pharmaceutical companies, regardingdecrease in research and development teams allotted
competitive intelligence.to finding more innovative drugs, there is a chance
One of the main reasons for the Pfizer job cuts wasthat many patients would not receive the best health
primarily because of the expiration of the patents ofcare that they are able to.
many of their bestselling drugs, including Lipitor,