Merck Will Sack 8,500 Employees and 2 Other Dow Movers to Watch
Merck & Co. (NYSE:MRK): Current price $48.42
Merck shares are down around 0.50 percent Wednesday, after Chief Executive Ken Frazier announced that his company is sacking 8,500 workers and implementing other cost-reduction measures in a restructuring project to center more heavily on its commercial and research and development operations. In a statement, Frazier observed that, “These actions will make Merck a more competitive company, better positioned to drive innovation and to more effectively commercialize medicines and vaccines.” The drugmaker intends to lower operating expenses by $2.5 billion by the end of 2015. The 8,500 job eliminations announced Tuesday, when added to previously reported layoffs of 7,500 employees, will shrink Merck’s total workforce by 20 percent.