Pharma Layoff Stats Show the Glory Days of Drugs Won't Be Coming Back
Pharmaceutical companies are currently cutting more jobs than any other business sector of the economy, and plan to hire the fewest workers back, according to a survey by recruitment firm Challenger, Gray & Christmas. The numbers are only a snapshot from the January-February period this year and last year, but they suggest that the glory days of Big Pharma are behind it and won't be coming back any time soon.
Two mega-mergers have triggered a major chunk of those job losses. The combination of Merck (MRK) and Schering-Plough triggered plans for 16,000 layoffs and the joining of Pfizer (PFE) and Wyeth calls for 20,000 job cuts. The Challenger survey said:
The leading job-cut industry early in 2010 is the pharmaceutical sector, which has announced 25,857 job cuts, including 17,687 in February. This two-month total is down slightly from the same period a year ago, when these firms announced 30,869 job cuts.Of course, layoffs in automotive and retail took place in the period before these numbers, so pharma looks unusually prominent this year. But layoffs in those sectors are done, whereas these numbers suggest drug business job cuts will be going on for a while.
The stats tell the tale, with pharma coming top of the cuts ladder and near the bottom of the hiring ladder:
Drug and healthcare companies reported just 60 vacancies in February:
It's not all bad news. CEO John A. Challenger says:
... there is an overall sense that we have turned a corner. With downsizing showing dramatic signs of stabilization, chances are good that increased job creation is approaching.Related: