Mundipharma is pushing for its first employee reduction

Decided to withdraw business due to opioid addiction

The impact of Mundipharma's reduction of narcotic analgesics business is also affecting Korean corporations.

 

A major reorganization is taking place, cutting two-thirds of the department's workforce.

 

According to the pharmaceutical industry on the 3rd, Mundipharma is conducting ERP with the aim of finishing at the end of August.

 

The target is the department in charge of narcotic painkillers among the two Rx departments.

 

This is the first time Mundipharma has conducted an ERP.

 

The voluntary retirement is attributed to global Mundipharma's massive reduction of its narcotic painkillers business.

 

This is because opioid-based narcotic painkillers have emerged as a social problem in the U.S.

 

due to death and addiction caused by overdose, and related pharmaceutical companies have been fined trillions of won.

 

It is considered a "panic drug" and the number of deaths from drug abuse has increased rapidly.

 

According to the CDC, opioid addiction killed about 500,000 people over the past 20 years from 1999.

 

Purdue Pharma, the parent company of Mundipharma, admitted responsibility for overdosing opioids, filed for bankruptcy, and decided to pay 5 trillion won in settlements to 15 states, including New York.

 

At the same time, he also expressed his willingness to sell Mundipharma.

 

Until recently, follow-up measures have continued, such as pushing for the sale of Mundipharma's Chinese subsidiary.

 

Mundipharma has stopped all research and development on narcotic painkillers and has launched a major reduction aimed at abolishing the division.

 

The compensation condition is '2n+8 (two times the number of years of service plus eight months' salary), which is known as the industry's average level.

 

On top of that, the company plans to pay additional special consolation money for annual leave.

 

The problem is that there is a high possibility that ERP applicants will fall short of this due to the large number of job cuts planned by the global community.

 

It is known that less than half of the applicants were applied a day before the actual application deadline.

 

The company's plan to finish ERP within August is also tight.

 

If the gap is large, conflicts between the management trying to fill the number of people somehow and workers to prevent it could arise.

 

Mundipharma reportedly expressed its willingness to complete the ERP smoothly by consulting with the labor union as much as possible.

 

A union official also said, "As global companies are pushing to reduce their business units, Korean corporations are also affected." Mundipharma said, "We will communicate closely with the company regarding ERP and try to solve the problem smoothly."