Sanofi to Slash Jobs In France
Sanofi is seeking to cull its workforce as it resets priorities. A French union representative told the news agency Reuters that the drugmaker is targeting 670 “voluntary departures” in particular in its human resources, IT and finance departments.
A spokesman for Sanofi in Paris told Reuters that because of the voluntary nature of the planned cuts and job transfers, "the final number of departures may be slightly different at the end of the process." Sanofi has made several rounds of layoffs in recent years, as part of a $1.6 billion cost-cutting drive.
At the same time, the company said it is also recruiting 250 people in France to help it "respond to new demands and to a changing environment with the relevant skills” as it seeks expertise in data protection, artificial intelligence, analytics, automation-related competencies, as well as marketing and bio-manufacturing.
Sanofi also plans to invest €700 million in France over the next two years to upgrade manufacturing sites for vaccines and other biologics.
Across the Rhine river in Germany, where Sanofi has had a major presence since acquiring the Aventis pharmaceuticals business and where its insulin focal point is located, the French company is in the process of eliminating 320 jobs up to 2020 under a pact with the workforce – 160 fewer than had been targeted earlier.
The staff cuts in Frankfurt were attributed in part to Sanofi’s pricing problems with its diabetes franchise following the expiration of the patent for its flagship Lantus, as its newer diabetes drug Toujeo was not entirely able to take up the slack.
Sales of Lantus began plummeting worldwide after the patent’s expiration as payers put pressure on Sanofi to drop its prices or face delisting. The drugmaker cut its US sales force by 20% at the beginning of 2017 and subsequently announced plans for an additional 400 cuts.
