Following Sanofi Cuts Last Week, Boehringer Ingelheim to Cut 327 Jobs in France
More pharma workers in France are receiving coal in their stockings this year after Germany-based Boehringer Ingelheim announced plans to cut about 300 jobs in that country as part of a reorganization of its operations in France.
For Boehringer Ingelheim, the job cuts are part of an effort to reorganize its business in France following an asset swap with Sanofi that was completed last year. Under terms of that deal, Sanofi gained Boehringer Ingelheim’s consumer healthcare drug business, while the German company gained Sanofi’s animal drug business, Merial. For Boehringer Ingelheim, the move was made to position the company as one a global leader in animal health. Merial has a number of pet health brands, including Frontline, Heartgard, NexGard, Broadline and Purevax. Its medical brands for farm animals includes Vaxxitek, Eprinex, Ivomec, Longrange, Circovac and GastroGard. When the deal was finalized, Lyon, France became a central hub for Boehringer Ingelheim. And that’s where the reorganization will focus.
According to a Reuters report, BI will cut 327 jobs. The company has a workforce in France of about 2,800. While the jobs will be cut, Reuters noted that 32 new positions will be created as part of the reorganization, according to Jean Scheftsik de Szolnok, BI’s head of France. For Boehringer Ingelheim, the plan will be to offer voluntary separation packages in order to avoid “forced departures.” Scheftsik de Szolnok did not provide Reuters with a timeline for when the cuts will be made.
Boehringer Ingelheim’s decision to cut 327 jobs in France comes less than a week after Sanofi announced its plans to cut 670 jobs in that country by 2020. The job cuts come in the wake of a restructuring at the company that has a goal of slimming down the company while evaluating its pipeline and other assets. Part of the plan included the slashing of $1.63 billion in costs over the course of five years – a goal that is has met. While Sanofi said it will make the 670 cuts in France, the company said it will invest €700 million ($797 million) to upgrade some of its production facilities. The company plans to upgrade its vaccine manufacturing capabilities, as well as the manufacturing for other biologic medicines.
The planned cuts from Sanofi and Boehringer Ingelheim come at a time that nation is seeing civil unrest over fuel and other economic matters. This week France’s President Emmanuel Macron promised a rise in minimum wage and tax concessions in response to the protests that have become violent.