Schering-Plough lays off 1,100 employees, closes Puerto Rico facility

By Elaine Rigoli

Tampa, Fla., June 1 - Schering-Plough Corp. said Thursday it is eliminating about 1,100 positions and closing manufacturing operations at its Manati, Puerto Rico, site by the end of 2006.

About 600 regular full-time positions will be eliminated in Puerto Rico, including about 550 in Manati and 50 at a manufacturing facility in Las Piedras, Puerto Rico.

The company said it expects to continue to employ about 475 people in Las Piedras.

About 500 regular full-time positions will be eliminated in New Jersey between the Kenilworth and Union sites.

All regular employees affected by this workforce reduction will be eligible to receive a severance package and access to outplacement services.

Total expenses associated with these actions are expected to be in the range of $235 million to $260 million, including $60 million to $70 million related to severance, $85 million for fixed asset and inventory write-offs and $90 million to $105 million for accelerated depreciation and closure costs, according to a news release.

Cash expenses included in these amounts are expected to be $65 million to $75 million relating to severance and closure costs.

About $130 million of these expenses will be incurred in the second quarter of 2006, the release said.

The company said these actions may generate annual cost reductions of about $100 million in 2007.

Schering-Plough is a global science-based health care company based in Kenilworth, N.J.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.