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.