And The Pharma Job Cuts Just Keep On Coming…
7 CommentsBy Ed Silverman // December 1st, 2010 // 8:31 am
One probably does not need to read the latest monthly tally from Challenger Gray & Christmas, the outplacement consultants, to know that pharmaceutical employment remains gloomy. In the past 24 hours, Novartis finally acknowledged plans to lay off 1,400 reps (see this) and Pfizer is saying goodbye to more than 180 employees at a distribution center (read this). And just two weeks ago, Roche announced that 4,800 jobs worldwide will soon disappear (look here).
But just how many industry jobs in the US were lost last month? The headcount amounted to 4,905, bringing the annual damage to 50,168, which means the the number of jobs so far this year is closing in on the revised total of 61,109 that were shed last year. Given recent developments - and let’s not forget that Express Scripts this month may close two processing centers that employ about 1,000 people (back story) - 2010 may prove to be as bad as 2009 (see the report here). Challenger, however, does not place pharmacy benefit managers in the pharma category.
However, as we have noted previously, there are two caveats. First, not all job cuts are disclosed, since some companies cut staff in dribs and drabs and, therefore, are not required to file notices with their state governments. The implication is that job losses are greater than the survey implies. At the same time, though, the monthly tallies do not necessarily present a complete employment picture, given that selective hiring continues for various positions at numerous companies. So the net effect may, unfortunately, be skewed. Yet, the larger trend is clearly not favorable.
industry insider
Ed, since reps by and large are not based in the state of the company HQ, in NVS’s case New Jersey, are these cuts cuts individually counted in the ex-reps’ state of residence or in NJ? Distributing 1400 rep layoffs over 50 states comes to 28 reps/state, not even enough to merit a WARN Notice.
industry insider
If you pool the pharma layoffs with health care product layoffs there has actually been a 28.3% reduction from 2009 to 2010. Thus on an aggregate health care sector basis I would submit that there has been a significant slowing in the rate of pharma/health care layoffs y/o.
Outsider
Mr. Insider,
I follow a lot of health care compamies, including drug and biotech.
I disagree with your comment, “has been a significant SLOWING —–”. I am seeing more layoffs.
industry insider
Do you have some kind of crystal ball, Mr. Outsider, or are you the reincarnation of Carnac the magnificent, or the famous architect Mies van der Rohe, who coined the expression “less is more”?
Outsider
Insider,
you just showed your ignorance by the question you posed.
I get my information publicly, just like any person who takes the time to do a little work. It’s from government reports and right from the companies releases.
Now, that you know a tad more than before, give it a try.
industry insider
Outsider, Anyone who trusts the information provided by the United States Government, an entity whose expertise is cooking the numbers and flat out lying to the American Public (ask Hillary Clinton about) is a “tad” naive IMHO.
Actually I really don’t care about the dying (some might say rotting) carcass otherwise known as the US Pharmaceutical Industry. Twenty-five per cent of my consulting business comes from emerging markets and I expect that number to double in the next three years. So please be my guest and use whatever numbers work for you. My focus is ex-US and the exploding business opportunities in the BRIC countries.
Ram Balani
Interested in BRIC countries. What sort of business do you do and how come you are so bullish for ex-US business?