AstraZeneca (AZN) to Cut 1,150 U.S. Sales, Leadership Jobs
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AstraZeneca (NYSE: AZN) reports it will reduce its U.S. sales force by approximately 1,150 leadership positions and sales representatives as part of the company’s ongoing strategy to operate its business more efficiently to best serve patients in the United States.
These changes, which were not included in previously announced efficiencies to the U.S. business, will account for roughly 24 percent of the company’s sales organization in the United States. The impact of the changes will vary by geography and selling teams.
“These are difficult decisions that impact valued employees,” said Rich Fante, President, AstraZeneca U.S. “The changes we are making, however, will help us deliver better results for our business and, most importantly, continue delivering on our mission of patient health.”
Employees will have the option to self-identify to potentially leave the company. All decisions will be finalized by early February 2012.
This change to the U.S. sales force is incremental to the ongoing second phase of the company’s restructuring program that was announced in January 2010. As a result, a discreet restructuring cost associated with today’s announced changes, estimated at between $50 million to $100 million, will be charged in the fourth quarter 2011. Restructuring costs are excluded from the company’s core financial measures, so this initiative has no impact on guidance for core earnings per share for 2011.
These changes, which were not included in previously announced efficiencies to the U.S. business, will account for roughly 24 percent of the company’s sales organization in the United States. The impact of the changes will vary by geography and selling teams.
“These are difficult decisions that impact valued employees,” said Rich Fante, President, AstraZeneca U.S. “The changes we are making, however, will help us deliver better results for our business and, most importantly, continue delivering on our mission of patient health.”
Employees will have the option to self-identify to potentially leave the company. All decisions will be finalized by early February 2012.
This change to the U.S. sales force is incremental to the ongoing second phase of the company’s restructuring program that was announced in January 2010. As a result, a discreet restructuring cost associated with today’s announced changes, estimated at between $50 million to $100 million, will be charged in the fourth quarter 2011. Restructuring costs are excluded from the company’s core financial measures, so this initiative has no impact on guidance for core earnings per share for 2011.
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