Fresh blow to UK pharma industry
1 Oct 2007
Concern as Pfizer decides to shutdown manufacturing operations in Kent — the latest in a series of restructuring moves by the world's largest pharmaceuticals companies
Pfizer is to shut its manufacturing operations at Sandwich with the expected loss of around 420 jobs. The decision comes in the wake of a major rationalisation at AstraZeneca, which will impact on its workforce in Europe and North America.
The Kent closure is linked to ongoing plans to consolidate worldwide manufacturing operations and manage global capacity more efficiently, Pfizer said. The pharmaceuticals giant aims to establish a smaller and more flexible cost base in, what it described as, an increasingly competitive environment for research-based pharmaceuticals.
"This is the latest in a number of global manufacturing changes, to ensure we are operating as efficiently and effectively as possible and able to respond to the challenges of today's business environment," said Tony Maddaluna, vice president of Pfizer Global Manufacturing.
"This global company decision is a real blow to the staff working at Pfizer in Kent and represents a worrying trend in the pharmaceutical industry," said Linda McCulloch, national officer of trade union Unite, which represents workers at the Pfizer site.
According to Richard Jones, managing director of Solihull-based business consultancy MCP, the pharmaceuticals sector is entering a major restructuring phase: "If you look at Pfizer, Astra Zeneca, etc, they are all looking for 25-30% savings in the next few years. In the past they threw money to have the capacity but they didn't have to perform."
In July, AstraZeneca announced plans to cut 7,600 jobs in an expanded cost-reduction programme. The cuts involve positions is R&D, sales & marketing and business infrastructure in the UK, Sweden, Germany, France and North America. This includes axing 700 jobs at its UK plant in Macclesfield, which employs 2,500.
Two years ago, Pfizer launched a rationalisation of the Sandwich site - scaling manufacturing down to API (active pharmaceutical ingredient) manufacture only - alongside the selloff of a facility in Morpeth, Northumberland, which employed around 600 people.
The Kent closure is linked to ongoing plans to consolidate worldwide manufacturing operations and manage global capacity more efficiently, Pfizer said. The pharmaceuticals giant aims to establish a smaller and more flexible cost base in, what it described as, an increasingly competitive environment for research-based pharmaceuticals.
"This is the latest in a number of global manufacturing changes, to ensure we are operating as efficiently and effectively as possible and able to respond to the challenges of today's business environment," said Tony Maddaluna, vice president of Pfizer Global Manufacturing.
"This global company decision is a real blow to the staff working at Pfizer in Kent and represents a worrying trend in the pharmaceutical industry," said Linda McCulloch, national officer of trade union Unite, which represents workers at the Pfizer site.
According to Richard Jones, managing director of Solihull-based business consultancy MCP, the pharmaceuticals sector is entering a major restructuring phase: "If you look at Pfizer, Astra Zeneca, etc, they are all looking for 25-30% savings in the next few years. In the past they threw money to have the capacity but they didn't have to perform."
In July, AstraZeneca announced plans to cut 7,600 jobs in an expanded cost-reduction programme. The cuts involve positions is R&D, sales & marketing and business infrastructure in the UK, Sweden, Germany, France and North America. This includes axing 700 jobs at its UK plant in Macclesfield, which employs 2,500.
Two years ago, Pfizer launched a rationalisation of the Sandwich site - scaling manufacturing down to API (active pharmaceutical ingredient) manufacture only - alongside the selloff of a facility in Morpeth, Northumberland, which employed around 600 people.
