Home Business AstraZeneca to Slash 1,600 Jobs

AstraZeneca to Slash 1,600 Jobs

AstraZeneca plc (NYSE:AZN) (LON:AZN) has announced that it plans to cut approximately 1,600 jobs as part of its plan to make big changes in its research and development operations. The drug maker also plans to consolidate its drug development work in three locations in the U.S., the U.K. and Sweden. The company’s January results were rather weak, so it makes sense that it is making some cuts.

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Reuters reports that one of the facilities that will be closed is AstraZeneca plc (NYSE:AZN) (LON:AZN)’s facility at Alderley Park in the U.K. The location has been a major part of research and development at the drug maker for over 40 years, and the decision to close it is a controversial one in a part of the U.K. that has relied on the company’s work there.

The drug maker’s new CEO Pascal Soriot will brief investors on his full plans on Wednesday. He says the cost-cutting measures will result in a one-time restructuring charge of $1.4 billion, although he projects annualized benefits of the moves to go up to $190 million by 2016.

In addition to slashing some jobs, AstraZeneca plc (NYSE:AZN) (LON:AZN) said it will build a $500 million new facility in Cambridge, where the company said it would be able to improve collaboration on its drug making efforts.

The drug maker said the U.K. would see 700 job cuts out of the total 1,600 cuts that are planned. The other 650 positions will be slashed from the company’s U.S. operations. It said its Wilmington facility will be significantly cut back.