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Nail-biting at Genentech as layoffs start
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Pink slips have started flying at Genentech's South San Francisco headquarters. In the wake of its buyout by Roche, the company has been in the throes of restructuring, with a major management reshuffle and now job cuts. The company won't say just how many employees will ultimately be shown the door, but told the San Francisco Chronicle that so far the cuts have affected "less than one percent" of Genentech's Bay Area workers.
Not that the cuts are a complete surprise; Roche said from the get-go that it expected to streamline the combined company's cost structure. Still, tension tends to run high when voluntary buyouts and layoffs begin, even if they're expected. The cuts are concentrated in administration and late-stage research, with few job losses expected in manufacturing. All six of the company's manufacturing and distribution facilities will stay open, the company said.
Genentech spokeswoman Caroline Pecquet said the terminated workers would get cash severance and continuing health coverage, along with job-placement services. Plus, they'll remain on the payroll for 60 more days.
- read the Chronicle story
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Comments
By Anonymous | Posted 12:42pm | July 10, 2009
Interesting that they always want to cut research. Research is what made Genentech so successful in the first place. The fact that big pharma doesn't spend enough on research to keep their pipelines full is why they are in so much trouble.
This is the difference between US auto manufacturers and Japanese manufacturers. US manufacturers spent all their money marketing their cars while Toyota and Honda spent their money making a better car. Guess which strategy worked better...
By Anonymous | Posted 2:00pm | July 10, 2009
Now..I do NOT work at gne, but I am familiar with the situation.
When YOU say that there are layoffs in "research" and the statement says layoffs in "late-stage research", in not convinced you're speaking honestly (or with the complete facts) about the situation.
I for one, dont consider late-stage research to be part of the mind bending heroics to CREATE new thought and science.
And this doesnt factor in that it's likely that late-stage research layoffs are simply removing extra positions after you bring in Roche people doing the same jobs.
Two of something is rarely ever 200% better.
Perspective counts.
By Anonymous | Posted 11:58am | July 11, 2009
This is just the beginning phase of a multi-year process. PS just wanted something to show off at the board meeting. This was just moving deck chairs. The real cuts will come later (possibly 2010). FYI.
By Anonymous | Posted 5:24am | December 7, 2009
I agree with the other poster that this is just something to show because Genentech currently has numerous openings for senior managers and directors, I'm not talking about only a half dozen. And just who are these managers and directors going to manage?
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