Genzyme Begins Layoffs to Cut Costs

U.S. biotech company Genzyme has begun laying off an unspecified number of employees, a move it said was unrelated to Sanofi-Aventis'  takeover bid.

The company did not reveal the number of employees it is letting go, but The Boston Globe said Genzyme plans to cut 1,000 employees worldwide over 15 months. It cited a memo sent by Genzyme Chief Executive Henri Termeer to employees on Friday. Genzyme spokesman Bo Piela declined to confirm the figure cited in the Boston Globe.

"We feel the right thing to do is to take a couple of days to speak to employees before making a public announcement," spokesman Piela said on Friday.

Piela said the Cambridge, Massachusetts-based company will cut throughout the organization as a part of restructuring announced in May to reduce costs. "Since May we have been working to evaluate the company and identify ways to bring down our costs," he said. "We've completed the first phase, which included streamlining the organization."

Piela declined to reveal how much the company expects to save through its cost-reduction plan, but said it will make an announcement next week, after it has spoken to its staff.

"We have identified specific target savings and will share them with other stakeholders, including shareholders, after we have talked with  employees," he said.

Genzyme has 12,800 employees worldwide, Piela said.