Pfizer To Boost Manufacturing Outsourcing To Asia
1 CommentBy Ed Silverman // November 30th, 2007 // 7:35 am
This is hardly surprising, given the overwhelming desire to take advantage of lower costs in such places as China, for example. During an investor presentation in Hong Kong last night, Pfizer officials say they want to outsource as much as 30 percent of its manufacturing, mostly to Asia, according to Dow Jones.
Pfizer currently outsources about 15 percent of its manufacturing, but wants to double that figure, as part of its ongoing cost cutting measures, although no timetable was given, or specific Asian countries named. Given the problems with corruption and toxic goods coming out of China, drugmakers are generally loathe to publicly embrace the country as a place to make their meds. AstraZeneca, for example, embarassed itself this fall by trying to deny such plans.
Earlier this year, Pfizer announced plans to shutter manufacturing sites in Brooklyn, N.Y. and Omaha, Neb., and sell a third manufacturing site in Feucht, Germany. These cuts, along with the closure of several research sites, were part of a company-wide plan to cut its worldwide workforce by 10 percent, or 10,000 jobs, and save $2 billion, Dow Jones reminds us.
Anton N.
But didn’t Pfizer already trim their work force by 10 per cent? They started with >120000 employees and have +/- 96000 employees now. So is 2008 going to be another 10 per cent totalling 20 per cent less warm bodies?