Merck cuts 7,000 jobs

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 has announced the first phase of a global restructuring program designed to reduce the Company's cost structure, increase efficiency, and improve competitiveness.

The initial steps will include the implementation of a new supply strategy by the Merck Manufacturing Division (MMD), which is intended to create a leaner, more cost-effective and customer-focused manufacturing model over the next three years.

"We are engaged in an ongoing effort to enhance efficiencies throughout the Company and improve the way we discover, develop, manufacture and market our medicines and vaccines,” said Richard T. Clark, chief executive officer and president of Merck.

Merck expects the initial phase of the cost reduction program to yield cumulative pretax savings of $3.5 billion to $4.0 billion from 2006 through to 2010. A significant portion of the total restructuring savings through 2010, or approximately $2 billion, will result from the implementation of the new MMD supply strategy.

As part of the global restructuring program, the Company expects to eliminate approximately 7,000 positions in manufacturing and other divisions worldwide, representing about 11% of its global work force, by the end of 2008. About half of the position reductions are expected to occur in the United States, with the remainder in other countries.