Boston, MA 07/14/2014 (wallstreetpr) – Pfizer Inc. (NYSE:PFE) will not go ahead with the planned job cuts at an Irish facility. The company said that the decision to spare about 100 positions at the facility was reached because of an unexpected increase in production at Ringaskiddy plant in Cork, Ireland.
About two years ago, the company announced plans to effect job-cut measures at the Ringaskiddy plant because of the loss of market exclusivity on its bestselling drug Lipitor. The company intended to chop 130 jobs at the facility.
However, following adjustments in work practice and talks with a trade union group, Pfizer Inc. (NYSE:PFE) reached a decision to spare the positions while also boosting investment at the facility.
The changes in how the plant operates led to greater competitiveness that the company said supports the jobs. The company went further to state that a significant proportion of the positions at Ringaskiddy are in the post-patent medicine, meaning those that have hit patent expiration.
Although Pfizer Inc. (NYSE:PFE) announced improvement in work practice as being behind the decision to spare the jobs at Ringaskiddy, it acknowledged that operations at post-patent divisions are always competitive but also unpredictable in terms of manufacturing volumes.
Divestment
Although one facility at Cork has been spared job-cuts, the company said it will go ahead with the divestment of a second facility in Cork. The company is reportedly seeking buyers for the facility.
Pfizer Inc. (NYSE:PFE) is undergoing a transformation that has gripped the drug industry as player seek to consolidate to reduce financial burdend especially in the face of widespread loss of market exclusivity on key products.
Failed acquisition
In addition to unloading non-core assets, the company is also seeking strategic assets to boost its revenue. It recently tried to make a purchase in the U.K. with a target at AstraZeneca plc (ADR) (NYSE:AZN).
However, it failed on the bid because AstraZeneca termed its $117 billion offer as too small to accept. The acquisition would have held Pfizer Inc. (NYSE:PFE) to reincorporate in Europe where corporate tax environment is considered favorable than in the U.S.
