Schering plans deeper job cuts

15th June 2004, Comments 0 comments

15 June 2004, BERLIN - German pharmaceuticals concern Schering AG announced plans Tuesday for deeper job reductions than previously disclosed in a bid to boost profitability.

15 June 2004

BERLIN - German pharmaceuticals concern Schering AG announced plans Tuesday for deeper job reductions than previously disclosed in a bid to boost profitability.

The Berlin-based company said that a further 900 jobs were to be cut in addition to the 1,100 reductions previously planned by 2006, one major step being to divest its dermatology unit.

The cost-cutting programme is meant to produce EUR 200 million in savings, the company said.

In revamping some operations and closing down some production units, the aim is to boost its operating profit margin to 18 percent by 2006, from the current 14 percent, chairman Hubertus Erlen said.

"We have set a goal of significantly improving Schering's profitability," Erlen said.

Group turnover is targeted to reach EUR 5.8 billion in 2006, compared with EUR 4.8 billion last year.

On 1 October, the dermatology unit is to be divested and launched as an independent business. At the same time, Schering is to cut by one-half 24 of its smaller production facilities.

At the moment the pharmaceuticals group has around 26,500 employees.

DPA

Subject: German news

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