Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

AstraZeneca PLC (ADR) (AZN) Relocating Jobs At U.K. Division

AstraZeneca plc (ADR) (NYSE:AZN) plans to cut some back office jobs in the U.K. as the company works toward cost-cutting and operation consolidation. The latest job cut by the company in the U.K. will be at its finance division located in Alderley Park, England.

Some 280 employees work at the company’s finance office in Alderley Park. The jobs will be moved to regional centers or transferred to the company’s headquarters in Cambridge.

gene, dna, organism, microarray, health, green, life, human genome, biotechnology, genetic diseases, disease, molecular biology, modern medical, micro structure,

Yang Nan/Shutterstock.com

The headcount adjustment at the finance operation is part of measures by the company to eliminate about $1.1 billion in annual costs. But it remains unclear at this juncture how many workers in Alderley Park will be affected.

“Employees globally have been briefed on these changes and individual employee consultations will now begin for impacted individuals […]. Naturally these discussions will remain confidential,” said a spokesperson for AstraZeneca.

The planned staff cut at Alderley Park finance office comes at a time when AstraZeneca plc (ADR) (NYSE:AZN) is struggling with payer pressure to cut prices of diabetes and respiratory drugs. But payer pressure is taking a toll on the company’s profitability. The company has posted profit declines in all the quarters reported so far this year. In 3Q16 the company said its profit dipped 12%, following a 22% decline in 2Q16 and a 12% drop in 1Q16.

As such, AstraZeneca has recently been working to boost its manufacturing capacity in biologics as it scales down in areas that have become less attractive. At the same time, the company has been pursuing business consolidation, largely to help it whittle down costs and improve the bottom line.

But AstraZeneca is not the only drug company feeling payer pressure and needing to adjust its headcount to stay afloat. Novartis AG (NYSE:NVS) kicked off a review of its global staffing in 2014, targeting to move 4,000 jobs to regions where labor costs are lower. It chose India among other markets for the thousands of jobs it was moving.

AstraZeneca plc (ADR) (NYSE:AZN) stock is down more than 23% so far in 2016.

Follow Astrazeneca Plc (NYSE:AZN)
Trade (NYSE:AZN) Now!

Note: This article is written by Andy Parker and originally published at Market Exclusive.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...