PharmExec Blog

Merck KGaA Announces Restructuring

Merck KGaA announced measures intended to reduce costs and increase efficiency to ensure the long-term success of its business model. The measures are part of a comprehensive transformation program that will be implemented in two phases. In the first two years, Merck plans to implement a new leadership organization, implement efficiency measures, and develop a long-term growth strategy. In the second phase, the company will explore new areas for growth. Cost savings from the first-phase efficiency measures are expected to fuel second-phase growth.
The announcement marks the beginning of the efficiency measures. At the beginning of 2012, Merck began the implementation of the new leadership organization, which defines the relationship of businesses, group functions, and country organizations. According to the press release, the objective of the new leadership organization is to streamline the organizational structure to be leaner, easier to navigate, and to speed up decision-making processes. The organizational realignment will continue in parallel to and support the efficiency program as well as the development of Merck’s long-term growth strategy.
The company expects the efficiency measures to result in workforce reductions across all businesses and regions, according to the release. The company deliberately did not release figures related to expected headcount reductions. In the release, Karl-Ludwig Kley, chairman of the executive board says, “We have a view on what needs to be achieved, but we will consult with the employee representatives on a country-by-country basis and we will consider any pragmatic proposals. We have specifically not published potential figures related to the efficiency program as we are committed to engaging constructively with the relevant stakeholders to achieve a mutually acceptable solution.”

By Amy Ritter, Pharmaceutical Technology.

Merck KGaA has announced measures intended to reduce costs and increase efficiency to ensure the long-term success of its business model. The measures are part of a comprehensive transformation program that will be implemented in two phases. In the first two years, Merck plans to implement a new leadership organization, implement efficiency measures, and develop a long-term growth strategy. In the second phase, the company will explore new areas for growth. Cost savings from the first-phase efficiency measures are expected to fuel second-phase growth.

The announcement marks the beginning of the efficiency measures. At the beginning of 2012, Merck began the implementation of the new leadership organization, which defines the relationship of businesses, group functions, and country organizations. According to the press release, the objective of the new leadership organization is to streamline the organizational structure to be leaner, easier to navigate, and to speed up decision-making processes. The organizational realignment will continue in parallel to and support the efficiency program as well as the development of Merck’s long-term growth strategy.

The company expects the efficiency measures to result in workforce reductions across all businesses and regions, according to the release. The company deliberately did not release figures related to expected headcount reductions. In the release, Karl-Ludwig Kley, chairman of the executive board says, “We have a view on what needs to be achieved, but we will consult with the employee representatives on a country-by-country basis and we will consider any pragmatic proposals. We have specifically not published potential figures related to the efficiency program as we are committed to engaging constructively with the relevant stakeholders to achieve a mutually acceptable solution.”

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One Comment

  1. Posted March 10, 2012 at 3:17 am | Permalink

    The universal manual I have utterly designed has been updated in the efficacy of the publishing of the entire reimbursement schedule according to ethical research that sustained balanced economic and social norms with the understanding of new terminology and rendering of practices. This the 19th edition of the Merck Manual offers valuable global concepts of specialty that explains the new ICD-10-CMS and it’s forms for interaction among treasury accountability. Adversely, the calculation of reimbursements will change with the coming century DGRs and still relive what has been captured by my independent study from 1975 to the start of the new ICD-10 on October 1st 2013. However, due to the accumulation of interviewed reports, I suspect a growing trend in the acquisition of new venues to follow as the medical field of perspective physicians will encounter challenges that will exist for further endowment in to the medical world. Organized methods of acquiring the factual aspects of the industry has been also reviewed as part of the universal manual which leads us into the next generation of physicians and those included in the practice of medicine and it’s usage.
    Steven James Adlawan
    +1808-534-1011
    StevenAdlawan1@student.kaplan.edu
    09 March 2012

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