FranceFrance's Sanofi Mulls Job Cuts (karma: 1)
FrogFryer Comments: 39926, member since Wed Apr 16, 2003
On Thu Jul 12, 2012 04:19 PM
Sanofi SA SNY -0.27%is considering cutting several thousand jobs in France, Industry Minister Arnaud Montebourg said Thursday, after the French pharmaceutical giant lost patent protection in the U.S. on some of its blockbuster drugs earlier this year.
France's Sanofi Mulls Job Cuts
By NOÉMIE BISSERBE And NADYA MASIDLOVER
PARIS—Sanofi SA SNY -0.27%is considering cutting several thousand jobs in France, Industry Minister Arnaud Montebourg said Thursday, after the French pharmaceutical giant lost patent protection in the U.S. on some of its blockbuster drugs earlier this year.
"Sanofi just came to [the Finance Ministry at] Bercy to say that it is considering several thousand job cuts," said Mr. Montebourg, speaking before the country's Senate. The announcement came just hours after car maker PSA Peugeot-Citroën SA UG.FR -1.74%disclosed plans to cut 8,000 jobs in France.
Sanofi, which has been struggling with new generic competition in the U.S. and Europe, has been extending its business activities to growth areas such as vaccines, diabetes solutions, consumer health care, innovative products and animal health, and expanding into emerging markets in a bid to become less dependent on patented medicines.
The Paris-based pharmaceutical major warned earlier this year that the loss of its patent in the U.S. on blood thinner Plavix and on Avapro, a drug used to treat high blood pressure, will reduce Sanofi's business net income in 2012 by €1.4 billion ($1.71 billion).
A spokeswoman for the French drug maker said Sanofi's management met with trade unions last week to open a "phase of dialogue" and a "reflection" on the future of certain activities in France.
"The plan will be disclosed in September," she said, adding it would affect research and development activities, the industrial activities of vaccine division Sanofi Pasteur, and the administrative unit. She declined to comment on the number of jobs that could potentially be affected by the plan.
On Thursday, Sanofi's management met with trade union representatives from the firm's research and development unit in Toulouse, in the south of France, said the company.
"In order to study the possible options for the Toulouse research center, an internal team led by the site's vice president for science has been set up," said the company in a statement.
Last April, Sanofi reported a 50% increase in first-quarter net profit thanks to higher sales—particularly in the U.S. and emerging markets—and the first-time inclusion of Genzyme, a biotechnology company acquired last year. The Paris-based pharmaceutical major said net profit attributable to shareholders rose to €1.83 billion in the quarter ended March 30, from €1.22 billion a year earlier.
Sanofi, however, reiterated its guidance for a 12% to 15% drop in full-year earnings per share, assuming no major changes in exchange rates.
Write to Noémie Bisserbe at firstname.lastname@example.org and Nadya Masidlover at email@example.com
1 Replies to France's Sanofi Mulls Job Cuts
|re: France's Sanofi Mulls Job Cuts (karma: 1)
By jukinj3 Comments: 15930, member since Tue Apr 08, 2003
On Thu Jul 12, 2012 04:54 PM
Edited by jukinj3 (62348) on 2012-07-12 18:13:13 more to ad
Cause: france in a temper tantrum votes in a socialist.
Effect: Companies trim french workforce and move off shore.
This is just beginning. The one thing that is not really measurable is all of the jobs that might have been in france but will not because of socialism.