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Sanofi's PowerPoint of Doom Shows 9,500 Layoffs by the End of the Year

Sanofi (SNY) will have axed around 9,500 jobs -- nearly 10 percent of its workforce -- since 2008 in its quest to wring €2 billion a year in savings from its operations. CEO Chris Viehbacher outlined the cuts today in a 201-page presentation to investors about "Growth," Quality" and "Value."

Although the slideshow didn't give totals, or say what percentage of Sanofi's total workforce will be laid off, it did describe individual cuts in various geographies and divisions. The edited highlights might be retitled "Sanofi's PowerPoint of Doom": It shows who faces the ax, and how much more Viehbacher wants to cut before he's done.

Next: Begin Sanofi's PowerPoint show on 9,500 layoffs»

The goal: Saving 2 billion a year in costs

It's all about money, of course. Patent expiries have created cheap competition that wiped €778 million from Sanofi's Q2 2011 revenues, reducing sales to €8.35 billion.

This slide shows how Viehbacher's ax-swinging is ahead of schedule. He intended to reach his €2 billion target in 2013, but Sanofi will be there by the end of this year.

Next: 3,000 lab coats going spare»

3,000 jobs gone in R&D

Sanofi will spend less money on its own research and instead acquire and license development products from other companies. That means the company needs 3,000 fewer scientists and R&D support staff.

Next: The death of the salesmen»

6,500 drug sales reps laid off

From 2008 through 2011, Sanofi will have laid off 6,500 pharma sales reps. About 3,800 of those will be in the U.S. and the rest in Europe.

Next: Nearly half of all U.S. sales jobs gone»

46 percent of American salespersons gone

In 2008, Sanofi had more than 8,300 people selling its drugs. By the end of the year 46 percent of those workers will be gone, leaving just 4,500 employed by the company. It's a similar picture in Europe. In emerging markets, however, the company added 3,720 jobs.

By the time Viehbacher is done, according to numbers presented in the slideshow and the company's previous annual reports, Sanofi's total headcount (which was 100,000 in 2008 and 101,575 at the end of last year, should settle at around 94,220.


Image by Flickr users Darren and Brad, CC.