Merck slump could mean 7,200 jobs

Marketplace Staff Oct 22, 2008
HTML EMBED:
COPY

Merck slump could mean 7,200 jobs

Marketplace Staff Oct 22, 2008
HTML EMBED:
COPY

TEXT OF STORY

Renita Jablonski: More losses from big names today, raising the worry even further we’re in for a pretty severe recession. Aircraft maker Boeing says its third-quarter earnings dipped by 38 percent. Drug company Merck is swallowing a 28 percent loss. And that’s not all, as Marketplace’s Jennifer Collins reports.


Jennifer Collins: Americans seem to be cutting back on those costly spoonfuls of medicine these days. Brand named drugs are losing ground to generics in this economic downturn.

That’s the message behind this morning’s disappointing earnings at Merck. Sales were down 2 percent. The pharma company now says it’s planning to cut 12 percent of its work force — that’s 7,200 jobs.

The New Jersey-based drugmaker blames falling sales. Earlier this week, Pfizer also reported a slump in sales, but said cost cuts helped keep the company’s profits impressive.

I’m Jennifer Collins for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.