Under CEO Paul Hudson, Sanofi is seeking to cut costs, among other goals. One route it's considering? Job cuts, Reuters reports.
The drugmaker is weighing hundreds of layoffs, sources told the news service, and management plans to meet with staff representatives Friday and Monday.
Around 1,000 jobs in France could be in jeopardy, two sources told Reuters. The moves are part of Hudson's "roadmap" for the company, but the announcement has been slowed by the COVID-19 pandemic, one said.
After taking the helm in September, Hudson in December unveiled a new strategic plan that included cutting costs to save €2 billion annually by 2022. To reach that level of savings, Sanofi planned to trim jobs in support functions, reduce manufacturing budgets, revamp purchasing, cut down on travel and more, Hudson said at the time.
A Sanofi spokeswoman confirmed to FiercePharma that the company plans to present portions of its December strategy to the European Works Council on Friday and to the Sanofi France Social and Economic Committee on Monday. Those plans involve "significant investments in France and Europe over the next three years," she added.
"As a matter of good practice and to maintain the constructive dialogues with our social partners, we never share any information before our meetings," she said. "However, we have shared publicly that we are re-aligning our structure to support a new corporate strategy to better drive growth and innovation."
The talks come after multiple rounds of layoffs or early retirement campaigns in recent years. A year ago, the company laid off U.S. sales staffers in response to “changing market dynamics,” a spokeswoman said at the time. Before that, the company eyed job cuts in France, eliminated 400 positions in the U.S. and sought voluntary retirements in Japan, all before Hudson took the reins.
More recently, the company just last week pledged $544 million for a new vaccine manufacturing facility in France, where it plans to employ 200.
Meanwhile, speaking to reporters ahead of an R&D day earlier this week, Hudson said Sanofi is focusing its R&D efforts on potential first- and best-in-class medications. The company has said it'll stop R&D in diabetes and cardiovascular disease areas, fields where Sanofi has a rich history but has faced increasing competition and sagging revenues in recent years.
The company has also put an emphasis on immunology blockbuster Dupixent, which Hudson says can generate €10 billion in peak sales through new indications and launches in new markets.