Roche Korea conducts the voluntary retirement program

ERP in progress, as part of the reorganization

Viatris, Astellas, and GSK also reduce their workforce one after another

Major factors of business environment and management deterioration changed due to COVID-19

Roche Korea conducts the Early Retirement Program (ERP).

 

In the first half of this year alone, many multinational pharmaceutical companies, including Viatris, Astellas, and GSK, started reducing the number of people.

 

According to pharmaceutical industry on the 3rd, Roche Korea is currently conducting ERP for reorganization.

 

The first target is the sales department.

 

At the end of last year, Roche reportedly conducted ERP for some manager-level employees in the sales department.

 

It is heard that specific size and conditions of ERP are under discussion.

 

Industries estimate that it will be about 20% of 60-70 employees in sales department.

 

It is heard that ERP will be carried out for desk job departments in second half of this year.

 

In the first half of this year alone, five to six multinational companies conducted ERP to reorganize or sell their business units, including Viatris, Astellas, GSK, Zuellig Pharma, Jansen, and Roche.

 

Viatris, which split from Pfizer and merged with Mylan, operated ERP as part of its global headquarters' massive restructuring plan.

 

In the process, several managers appear to have resigned.

 

GSK also conducted ERP to some sales and marketing executives while reorganizing its business structure.

 

In particular, as telecommuting and non-face-to-face marketing have increased due to COVID-19 outbreak, and the reporting system has changed, management executives are mainly on the ERP list.

 

The reason for the implementation of Astellas Pharma and Zuellig Pharma's ERP is the deterioration of management.

 

In order to overcome the situation in which patents of major items expire or are damaged in the long term, restructuring has begun.

 

Astellas said its goal is to reduce its total staff by 40%.

 

Zuellig announced it would restructure about 80% of its 100 sales staff.

 

It posted operating losses for the third consecutive year last year, with a debt ratio of 30,000%.

 

Janssen is different from other companies.

 

Janssen, which sold its Hyangnam plant to Whanin, added ERP as an option in the process of redeploying its employees.

 

Employees who want to stay will be transferred to the Songdo plant in Incheon.

 

Retention of employment is a fundamental principle.

 

Employees who do not want this can choose the ERP.

 

Meanwhile, Sanofi and Lilly also conducted ERP late last year due to the COVID-19 crisis.