Merck to slash annual costs by $2.5 billion, cut 8,500 jobs

By Ransdell Pierson (Reuters) – Merck & Co, taking a cue from rival drugmakers that have slashed research spending to bolster earnings, said it will cut annual operating costs by $2.5 billion and eliminate 8,500 jobs, or more than 10 percent of its global workforce. Merck, whose shares rose 2.3 percent, said it aims to narrow its focus to products with the best chance of winning regulatory approval and achieving substantial sales. It will jettison research products with less likelihood of success. …