astrazeneca lowers the boom on jobs blames competition

We have heard it all before that the medical industry and pharmaceutical companies are immune to economic ups and downs. Well maybe not so much. AstraZeneca is handing out pink slips to 1,500 workers in the US. Why? Well the big brand drug maker thinks the competition is too stiff. In particular, AstraZeneca cites the lower cost of generic drugs and the continued trend of Americans focusing on lower cost drugs given tighter paychecks and ongoing economic uncertainty. Maybe we can blame this one on Obamacare too?

AstraZeneca has nearly a dozen drugs with sales at or above $1 Billion each yet still finds the need to cut jobs. Makes you wonder how much greed versus cheaper generic drugs is playing a role in the workforce reduction decision. This is the company with popular drugs like Crestor for cholesterol management and Symbicort for individuals with asthma. With well-known drugs as mentioned you would think the company could make a decent profit and maintain a stable base of employees. After all, how much in sales does it take to be profitable $2 Billion? $4 Billion? Apparently, whatever the profit targets maybe they are not in line with sales and as a result AstraZeneca is pulling out of R&D for some drugs which means wave bye-bye to 550 scientist and support staff. Translation, let’s cut corners to make cheaper drugs; usually, such a strategy isn't good for patients. Perhaps this is yet another example of the benefits of national health care. In any event, AstraZeneca is not exactly the place to go looking for a job right now given the reductions of headcount. Maybe later but not now.