Pharmaceutical and healthcare information provider IMS Health, US, plans to trim 850 jobs globally over the next 12-15 months, media reports have indicated. The move follows a worse than expected decline in quarterly revenues. Second-quarter revenue was $522.8 million, down 13 percent. Including a $25.4 million asset impairment and other charge, operating income in the 2009 second quarter was $69.3 million, compared with $131.4 million in the year-earlier period.
The number of jobs likely to be cut is about 10 percent of the company's global employee strength of 7,500. Media reports indicate that most of the job cuts will take place in Europe, the Middle East and Africa. Last year, IMS had trimmed 10 percent of its workforce under a restructuring plan to save $60 million annually.
Through various restructuring measures, IMS expects to generate annual savings of about $85 million by 2011. The cost-cutting measures announced with the quarterly report include streamlining the company's EMEA organisation, which includes right-sizing the headquarters function, reducing and consolidating operating units, and improving productivity of production and development activities; and reducing capacity and aligning the size of sales and management consulting teams in areas of lower demand.
IMS plans to continue to build and invest in high-value, strategic growth areas, which include extending the company's capabilities in specialty and patient-centered insights; in serving payers and governments; and in emerging markets where its operations are currently growing at a double-digit pace.
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