Germany's Merck to shut Serono unit's Swiss HQ
BERLIN (AP) — German drug and chemical maker Merck KGaA said Tuesday that it plans to shut the Swiss headquarters of its Merck Serono pharmaceutical division as part of an efficiency drive — cutting more than 500 jobs.
Merck said it plans to transfer more than 750 of the 1,250 jobs at Serono's Geneva base to other sites, and would concentrate headquarters functions in Darmstadt, Germany.
It said it expects to cut 500 jobs in Geneva in an effort "to eliminate duplications and create a leaner, more agile organization" and another 80 at Swiss manufacturing sites.
The measures "are needed to ensure our global competitive position in a rapidly changing market and to secure the long-term future of the company," Merck board member Stefan Oschmann said in a statement.
The move is part of a wider efficiency program that Merck launched in February. The company said that, after consulting with employees, it aims to start implementing the relocations and job cuts in Switzerland in the second half of this year.
Merck completed the acquisition of Serono from the Bertarelli family at the beginning of 2007.
"I'm obviously very sad and a bit surprised," former chief executive Ernesto Bertarelli told The Associated Press in Geneva after Merck's announcement that the Geneva headquarters would be shut. "Serono's products have done well for the company."
