Merck to cut jobs

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Merck plans to eliminate 7,200 jobs by the end of 2011, according to their 2008 third quarter linkurl:financial report,;http://www.merck.com/newsroom/press_releases/financial/2008_1022.html 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 linkurl:pharmaceutical company;http://www.the-scientist.com/article/display/23391/ 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 linkurl:study;http://www.philly.com/philly/business/29553459.html 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.

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