While the financial markets teeter, Pfizer stock closed 4 percent higher yesterday as rumors of more layoffs swirled. Never mind that Pfizer already announced big job cuts; the actual implementation appears to be cheering investors as it scares the drugmaker's rank-and-file. Derek Lowe at In the Pipeline hears from his Pfizer sources that employees are being told to expect "deep cuts," with more details--and some actual pink slips--hitting in two weeks.
As you know, a Pfizer exec announced earlier this week that about $800 million in cost cuts were coming during the fourth quarter. Now, word that those cuts could include jobs are making analysts tout Pfizer shares. "I think the 7 percent yield is increasingly attractive in the current environment," uber-analyst Barbara Ryan of Deustche Bank told MarketWatch, referring to Pfizer's vaunted dividend. Ryan also said word of layoffs, plus Pfizer's strong cash position, are boosting the stock.