The handwriting is clearly on the wall as New York City, New York pharmaceutical giant Pfizer has announced early retirement to qualified employees prior to an announced layoff of up to 2,000 employees in 2019. According to the company, the layoffs are part of a restructuring plan whose goals are to “simplify the organization to avoid duplication, create single points of accountability and reduce the number of layers within teams.”
A company spokesperson noted, “As we prepare for growth we are creating a simpler more efficient structure which will affect some managerial roles and responsibilities. “We are offering enhancements to certain benefits to lessen this effect.” It appears that employees who are 55 or older or who have at least ten years of service are eligible if they notify the company of their intention to accept the offer in the near future.
Like many restructuring efforts, the leadership will also pass from the current CEO Ian Read who will become Executive Chairman to the current COO, Dr. Albert Bourla. Perhaps the greatest challenge facing Dr. Bourla, a veterinarian from Greece, will be the loss of significant billion dollar revenue streams as drugs come off patent and are faced with competition from lower-priced generics. Such as loss can be massive as the company lost an estimated $23 billion in revenue with anti-cholesterol statin Lipitor and is facing the lost of at least $3.5 billion in revenue with the loss of patent protect on Lyrica, the anti-convulsive medication.
It can happen to anyone, anytime, anywhere ... are you wondering, Am I Next?