Merck Serono efficiency measures announced
Plans include closure of Geneva headquarters, workforce reduction and relocation of some activities
Merck KGaA has released details of the efficiency measures it plans to take in relation to Merck Serono’s operations in Switzerland. The plans are part of the comprehensive transformation programme announced by the company in February focused on addressing unprecedented market shifts, increasing competition in key product areas and existing inefficiencies in the organisation.
To eliminate existing duplications of functions resulting from maintaining two European headquarters, the Merck Serono headquarters in Geneva will close and all the functions will be consolidated in one Merck Serono Campus in Darmstadt, Germany.
The company also plans to transfer key research and development positions from Geneva to Darmstadt, Boston and Beijing ‘to optimally leverage scientific expertise in the biotech hub of Boston and to ensure state-of-the-art clinical development in all key growth markets’.
Out of the 1,250 current positions in Geneva, more than 750 positions will be transferred; 130 of these, related to technical manufacturing operations, will move from Geneva to the Aubonne area to be close to the company’s manufacturing activities. The remaining 500 posts will be lost, resulting in the closure of the facilities in Geneva.
Merck Serono will continue to manufacture biotech products in Switzerland at its state-of-the-art biotech production sites in Aubonne and Corsier-sur-Vevey. However, it also plans to reduce approximately 80 positions across the three production sites in Aubonne, Corsier-sur-Vevey and Coinsins. The existing manufacturing operations in Coinsins will be relocated primarily to the Aubonne site. Merck intends to maintain its Swiss market operations in Zug.
‘The planned measures for Merck Serono’s operations in Switzerland are needed to ensure our global competitive position in a rapidly changing market and to secure the long-term future of the company,’ said Stefan Oschmann, executive board member of Merck and responsible for the Merck Serono division.
A dedicated team will assist employees and cantonal stakeholders in evaluating possible spin-off and start-up opportunities outside of Merck Serono that could have long-term potential. Merck Serono is prepared to commit up to €30m in seed funding focused on activities and compounds that are not core to Merck Serono’s current and future business objectives.
Upon completion of the consultation process and review of its results, the company intends to start relocations and reductions of its workforce in the second half of 2012, with full implementation scheduled for the first half of 2013.