Pfizer takes the axe to manufacturing operations

Pfizer is to reduce manufacturing staffing by around 6,000 - around 18% of its total production workforce - and close eight facilities in the US, Ireland and Puerto Rico by 2015.

Another six plants in Germany, Ireland, Puerto Rico, the UK and the US will be downsized as part of the efficiency drive, which may also see production shifted to other parts of the world to "better align production with market demand".

The move - described as "the first phase" of a cost-reduction strategy, comes in the wake of Pfizer's $68 billion acquisition of Wyeth and is designed to save $4-$5 billion globally by the end of 2012.

The decision has been made after an "intense" six-month evaluation of sites that manufacture injectable, sold-dose and biologic drugs, as well as consumer healthcare products, the company said in a statement.

Pfizer has said that it will explore the possibility of selling off plants that are facing the axe, a task which could be difficult given the sheer volume of production capacity being shed across the pharmaceutical industry in Europe and the North America.

It is also still reviewing plans for production capacity in its animal health operations, as well as manufacturing sites in emerging markets.  

Overall, the company plans to shed 20,000 jobs in the restructuring exercise, which last year saw six R&D facilities in the US and UK earmarked for closure. The company currently employs 33,000 people in its manufacturing division across 78 facilities worldwide.

Solid-dosage plants facing the chop include Ireland's Loughbeg site, Caguas in Puerto Rico as well as Rouses Point in New York, USA, which has been facing closure since 2005.

Oral dose production will also be phased out at Guayama, Puerto Rico, although that site will expand consumer health manufacturing, said Pfizer. Reductions are planned at Illertissen in Germany and Newbridge, Ireland.

In the injectables segment, Ireland and Puerto Rico are hit once again by the planned closures of facilities in Dublin and Carolina, respectively.

Meanwhile biologic plants in Shanbally, Ireland, and Pearl River in the USA will also be shut down, with scaling down at Havant in the UK as well as Sanford and Andover in the US.

Finally, on the consumer healthcare front, production will cease at Pearl River and Richmond in the US.

"We must continue to adjust to the fast-changing and extremely competitive environment in which we operate," commented Pfizer Global Manufacturing President Nat Ricciardi.

"That means realigning our network and reducing our manufacturing capacity."

Phil Taylor