Hoechst AG to Cut 8,000 Jobs in Pharmaceutical Division by 1997

Hoechst AG, a major German chemical company, has announced plans to reduce its workforce in its pharmaceutical division by about 8,000 jobs by the end of 1997. This move is part of the company's efforts to integrate its pharmaceutical activities, leading to "synergies and overlaps." The job cuts, which began in 1993, have been accomplished solely through attrition so far, but the company cannot rule out layoffs in the final two years of the program. The reductions are expected to result in savings of more than $719 million.

Key Takeaways:

• Hoechst AG plans to cut approximately 8,000 jobs in its pharmaceutical division by the end of 1997.
• The job cuts began in 1993 and have been achieved through attrition, but the company may implement layoffs in the final two years of the program.
• The reductions are expected to generate savings of more than $719 million.
• 1,400 of the job cuts are expected to take place in Germany, with no further breakdown provided on the locations of the remaining 6,600 cuts.
• The company is in the process of integrating its pharmaceutical activities with those of Marion Merrell Dow, a company it is purchasing from Dow Chemical Co.
• Hoechst AG is one of Germany's "big-three" chemical groups and generates about half of its sales within European Union countries.
• The company reported group sales of approximately $35.7 billion and a profit of $978.4 million in a recent year.

Statistics:

• 8,000 jobs expected to be cut in Hoechst AG's pharmaceutical division by the end of 1997.
• $719 million in expected savings from the job cuts.
• 1,400 job cuts expected in Germany, with no further breakdown provided for the remaining 6,600 cuts.
• Company reported group sales: $35.7 billion.
• Company reported profit: $978.4 million.

Sources:

• Associated Press, "Hoechst Plans to Cut 8,000 Jobs", 1996.
• Hoechst AG, undisclosed statement, 1996.