Markets

Sanofi: 1,300 Jobs Lost; U.S. Staff Largely Unscathed

By Jim Edwards

Updated on: June 30, 2009 / 2:39 PM EDT / MoneyWatch

Sanofi-Aventis is to grant "voluntary departures" to 1,300 of its 100,000 staff in an effort to cut R&D costs, the WSJ reported. About 650 jobs will be cut or moved in France. The move was expected, BNET noted June 23. FiercePharma summarized the complicated announcement best:

The French drugmaker will shutter four facilities in its home country and sell a fifth, with plans to close down locations in Japan, the U.S., U.K. and Spain as well.

BNET had predicted that there would be layoffs and that those layoffs would fall more heavily in the U.S. than Europe because it is more expensive to lay people off over there. Clearly, the job loss part of that we got right but the U.S. part we got wrong. However, the other shoe is yet to fall -- Multaq is still not approved and is now overdue. If there's a problem with that drug then reps in the U.S. can expect to feel the heat.

Also note that whereas U.S. reps were laid off in December, the Europeans got buyouts and transfer assistance. Those of you who dislike the "socialist" way of doing things in Europe might want to take note of how much longer those guys kept their jobs and how much better their severance options seem to be.

Here's Sanofi's condensed statement:

Aware of its social responsibilities, the sanofi-aventis Group will not be engaging in any layoffs. A plan for voluntary departures is being considered. This will comprise a mechanism for anticipated work departures fully financed by the company, and assistance for professional reorientation projects outside the company. Discovery and Preclinical Research are the activities that will be mostly affected by these measures.
The research reorganization project will also concern preclinical activities in some sites of Spain, the United Kingdom, the United States and Japan where divestment or reconversion solutions will be sought for certain activities.
Within this perspective, a plan for voluntary employee departures is being considered. This will comprise a mechanism for anticipated work departures fully financed by the company, and assistance for professional reorientation projects outside the company.