Bristol-Myers Squibb Announces $2.5 Billion in Cuts and Layoffs
.jpg)
Bristol-Myers Squibb (BMS) made a presentation this morning at the Credit Suisse Healthcare Conference that showed the company plans on saving an additional $2.5 billion in “productivity initiatives.” According to its new CFO, the company plans to squeeze the savings out of “headcount and related costs” — which likely means more downsizing and layoffs. Rumors have it that these job cuts will take place by December 1, 2008 just prior to when employee bonuses are traditionally decided.
To make matters worse, the Pharmalot blog reported today that "the drugmaker earlier this week sent a voicemail to employees saying a 2 percent cost of living increase will be given this year to those who are meeting or exceeding performance standards." The announcement has lead to speculation among BMS employees whether or not the same ceiling will be applied to the bonuses and stock rewards handed to Bristol-Myers CEO Jim Cornelius and members of his executive team.
Heavy losses incurred by its former CFO who "bet the store" on mortgage-backed securities coupled with the recent, highly publicized failure of Jim Cornelius to purchase ImClone (to gain complete control over the multi-billion dollar Erbitux franchise) suggests that the future of the company may be in serious jeopardy.
Until next time…
Good Luck and Good Job Hunting!!!!!!!
