News Summary: Merck to cut 8,500 more jobs

AP News
Posted: Oct 01, 2013 1:02 PM

MORE REDUCTIONS: Drugmaker Merck & Co. said Tuesday it plans to cut another 8,500 jobs in addition to a total of 7,500 cuts it had previously announced but hasn't carried out.

BIG PICTURE: The cuts mean Merck is slashing about 20 percent of its global workforce, currently at about 81,000 people.

WHY: Merck expects that the moves will help generate annual savings of about $2.5 billion by the end of 2015. It expects to realize $1 billion by the end of this year. Drugmakers have been struggling with competition for some of their biggest sellers from cheaper generic drugs.