Why Is Merck & Co. Inc (NYSE:MRK) Cutting Down Jobs Again?
Merck & Co., Inc (NYSE:MRK) announced that it will be cutting-down 8,500 jobs and also announced its savings of $2.5B. This is part of an international initiative to polish the company’s research, commercial and developmental focus. On Tuesday, Kenneth C. Frazier, the company’s CEO said that the multi-year plan that the company has drawn will help them target their resources in a better manner. He said that the company would strengthen its pipeline of drugs, implement an operating-model that has more agility and also cut down costs. All of these will go towards making the company more competitive.
The company’s commitment
He said that this latest announcement highlights the fact that Merck & Co., Inc (NYSE:MRK) is committed to improving its performance in the short-term and is also focused on investing in the long-term to create value for its customers, patients and stakeholders. These latest cuts are in addition to the 7,500 that had been announced earlier. Separately, the company announced that it is scrapping its plan of shifting its headquarters to another facility in New Jersey and that they prefer to consolidate the company’s current operations there and in Kenilworth.
In Thursday’s trading, Merck & Co., Inc (NYSE:MRK) rose by 0.47%. The opening price of the shares was $47.60, which climbed to an intraday high of $47.63 and dipped to a close of $47.7. Approximately 17.26 million shares were traded on Thursday while an average volume of 14.34 million shares were traded over a 30 day period. The 52-week low of Merck & Co., Inc (NYSE:MRK) shares is $40.02 and its 52-week high is $50.16. The company has a market capitalization of $138.97 billion.
About the company
Merck & Co., Inc (NYSE:MRK) is a global healthcare company. It delivers health-solutions via its prescription-medicines, biologic therapies, vaccines, animal-health, and consumer-care products