Pfizer's Irish operations appear to have escaped the massive jobs cuts announced by the global drugs giant yesterday as it aimed to slash annual costs by $2 billion.
The company said it was cutting 10,000 jobs or about 10 per cent of its total worldwide workforce by the end of next year. This includes the 2,200 US sales jobs reductions announced at the end of last year.
In Europe, Pfizer said it would take steps to streamline its operations, with a proposed reduction to its European field force by more than 20 per cent, subject to consultation with works councils and local labour law. It is unclear if any sales jobs will go at Pfizer's consumer healthcare Ireland subsidiary, which is responsible for the sales and marketing of over-the-counter medicines, oral hygiene and skincare products.
Pfizer is to close two manufacturing sites in New York and Nebraska and plans to sell a third site in Feucht, Germany. From 2003 to 2008, it will have reduced its network of manufacturing plants worldwide from 93 to 48, including the sites announced yesterday.
The company is planning to close three research sites in the US and is proposing to close research sites in Nagoya, Japan, and Amboise, France.
However, despite escaping yesterday's announced cuts, the Irish operations in Dublin and Cork are still under review.
"Our position in Ireland is we have an ongoing review of manufacturing operations but it is not yet complete," a spokeswoman said.
Pfizer employs about 2,000 people here. As well as its six manufacturing plants, the US pharmaceutical giant it also runs a Dublin treasury centre, providing treasury and in-house banking services to Pfizer affiliates worldwide, and Pfizer International Bank Europe, both based in Dublin's International Financial Services Centre. It also has a European financial share services centre which is based in Dublin.
It had been expected that Ireland would share in the cost-cutting. Pfizer's Loughbeg and Little Island plants in Cork are involved in the manufacture of anti-cholesterol drug Lipitor. While it is the world's best-selling drug, its patent is due to expire in 2011, allowing generic manufacturers to produce rival drugs at lower cost.
At the end of last year Pfizer stopped development of Torcetrapib, a cholesterol treatment drug that was to replace Lipitor. The replacement drug, which many were anticipating to be a major earner, was expected to have been manufactured in Cork.
Pfizer shares have suffered on concerns about the generic threat to Lipitor and other key drugs.
The cuts come as Pfizer said quarterly profit more than tripled on the sale of its consumer health business, although revenue was flat amid lower sales of Lipitor and generic competition for several medicines.
