AstraZeneca unveils new job cuts

AstraZeneca will cut its workforce by 7,600 people as part of an expanded cost-cutting drive, it said last night.

AstraZeneca will cut its workforce by 7,600 people as part of an expanded cost-cutting drive, it said last night.

The Anglo-Swedish drugmaker, which announced in February it planned to lose about 3,000 positions, said it would increase the cuts to more than 10 per cent of its 2006 workforce in a drive to make over $900 million of annual savings by 2010.

Chief Executive David Brennan said the additional job losses would affect the company's European sales and marketing team as well as employees working in research and development and other areas in Britain, Sweden, Germany, France, the United States and Canada.

The cost of the restructuring will be $1.6 billion.

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Analysts welcomed the move to improve efficiency but said they were confused about the outlook figures and concerned about flagging sales of top-selling stomach acid pill Nexium.

Earnings per share at the company excluding restructuring costs and expenses related to the recent acquisition of US biotech firm MedImmune rose 17 per cent to $1.19, on sales up 10 per cent at $7.27 billion.