Merck

     2011

     2012

Employees: 86,000

Employees: 83,000
Change: -3,000, -3.6%

Revenues: $48.047B

Revenues: $47.267B

The 3,000 jobs that Merck ($MRK) lost last year in its effort to be a more svelte pharma company hardly tell the story. About 22,400 employees have been given their walking papers since Merck swallowed Schering-Plough in a $41.1 billion acquisition in 2009. That figures out to more than 21% of the workforce over the three years since cranking up its "merger restructuring program."

Shrinking was always in the cards to make the postmerger financials add up. Merck also faced financial pressure from last year's patent loss of its multibillion-dollar allergy-and-asthma drug Singulair. Sales of Singulair were off 30% for the year, although it only lost patent protection for about 4 months.

Merck's $47 billion in revenues last year were off 2%, and 2013 revenues are expected to be flat. CEO Kenneth Frazier has told shareholders not to look for any megadeals. Nor is he interested in spinning assets off. He still sees vet drugs and consumer health as part of the mix. Instead, he intends to rely on the company's vaunted R&D apparatus to move past patent cliff problems. Given that its R&D has not paid off much in the last few years, he brought back Roger Perlmutter to be head of R&D. Perlmutter was at Merck before becoming R&D chief at Amgen ($AMGN).

For more:
Merck has to trim outlook as pipeline poops out
Merck CEO up for diversity and deals, but one bite at a time
Merck plots HQ move to former Schering site

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