Merck plans to eliminate 7,200 jobs by the end of 2011, according to their 2008 third quarter financial report, released today. The cuts are part of ongoing restructuring efforts and come after a 28% profit plunge in the third quarter.

The restructuring efforts began in 2005, and at the time the pharmaceutical company eliminated more than 10,000 jobs. The current cuts represent 10% of Merck's remaining job force; 40 % are US jobs, and a quarter of the cuts are of high-level or mid-level executive positions, although cuts will be made in every sector of the company.

The company has suffered sluggish sales, especially of their vaccines, with third quarter revenue down 2%. Sales of prescription drugs between January and August of this year did not increase for the first time in 10 years, according to a study by IMS Health.

"With the right long-term strategy and our efforts to reshape Merck's business, including today's actions, I am confident we are building a solid foundation for achieving industry-leading performance in the future," Merck CEO Richard Clark said in the report.