Bristol-Myers Will Cut Even More Jobs
2 CommentsBy Ed Silverman // July 24th, 2008 // 2:06 pm
The drugmaker, however, is being coy about specifics. In its earnings release this morning, Jean-Marc Huet, the recently hired senior vp and chief financial officer, reminds us that last year unveiled plans to save $1.5 billion by 2012, but now another $1 billion in cost savings is targeted by 2012.
“We have commissioned several internal teams to execute against some already identified projects,” he says in a statement. “We will provide additional information on this second wave of productivity initiatives and its costs by year-end.”
According to the most recent Pharmalot layoff tally, which probably needs to be updated a wee bit, Bristol-Myers occupied the No. 7 slot among drugmakers shedding huge numbers of employees with 4,300 jobs being eliminated. Of course, a quick way to cut headcount is to merge, and Huet does have merger and acquisition experience (background).
Old Friend
I have heard from a reliable source that a third of the additional $ 1 billion in savings will come from headcount. That is another 5,000 employees on top of the already mentioned 4,300. The new headcount target for BMS post divestiture of Convatec and spin-off of Mead Johson is 29,000. Most cut will come form the US and Europe. This will happen within the next year or so…BMS needs cash if it is to pay its dividend.
CMC guy
Based on Old Friends numbers simply Calc. $1B*1/3*1/5000 = Save $66.7K per employee
CEO 2007 Compensation $11.3M (Base/Bonus/Inventive/Stock) then plus any additional perks?
SO if BMS axe CEO and a few other execs wouldn’t they save more?