Schering-Plough Program to Affect All People, Units

Details of restructuring are still being developed.

Published on: Apr 4, 2008

A sweeping cost-elimination program "to avoid and reduce costs and increase productivity" - including management and product line restructuring that will affect every area of the company - has been announced by Schering-Plough Corp., which owns Intervet Animal Health and Schering-Plough Animal Health, the combination of which represents the largest animal health company in the world.

The program's goal is to cut $1.5 billion of corporate-wide costs, or 10% of the company's 2007 costs, according to the announcement. It will terminate more than 5,000 of the company's 55,000-person worldwide workforce, according to the announcement.

Chair and chief executive officer Fred Hassan said the cost-cutting program will include "simplification of product lines -- especially in the combined animal health business." However, a company spokesperson says she can not elaborate on the extent to which the program would affect the animal health personnel and products, explaining that those details still are being developed.

Source: Feedstuffs