Sanofi to stand alone Consumer Healthcare and offer ERP

CHC as an independent subsidiary to be finalized September next year

ERP with 2n+8 compensation to be offered to CHC and GenMed

Number of applicant goal expected to be not met, the union demands another reassignment plan

Sanofi is reportedly planning to spin off the Consumer Healthcare (CHC) businesses and offer early retirement program (ERP) to employees under CHC and General Medicine (GenMed).

 

On Nov.

 

13, Sanofi-Aventis Korea notified all employees the global Sanofi CHC stand alone plan that would also affect the South Korean branch as well.

 

Sanofi official stated, “From early this year, the Sanofi group has been preparing the CHLOE project to consolidate competitiveness within the worldwide organization.

 

The restructuring would be executed to improve business efficiency and sustainable competitiveness.

 

And the key objective is to establish an independent consumer healthcare subsidiary.” Sanofi aims to spin off the CHC and shift the OTC drug sales tactics from direct sales to third-party sales.

 

Also the company is to actively implement the online business model.

 

As a part of the spin off, scheduled to get finalized September next year, the company officially initiated the ERP.

 

The program would be offered to two departments CHC and GenMed The internal change signifies Sanofi’s new R&D strategy to halt researches on diabetes and cardiovascular disease treatment and focus on rare disease, cancer and neurological disorder.

 

Accordingly, the company has disclosed the plan to reduce the size of GenMed businesses, centering on diabetics and cardiovascular treatment currently, based on the headquarters’ new strategy.

 

Sanofi official explained, “As a new product launch from GenMed is unlikely to take place anymore, the demand for necessary human resources would get limited.” The compensation for the ERP would be doubled the number of consecutive working years plus eight months, a standard for multinational pharmaceutical company.

 

However, the company insiders are concerned the number of ERP applicants from CHC would not meet the management’s expectation.

 

Unlike GenMed with over 200 employees and a half of the sales executives having over a decade of experience, CHC has only about 60 employees, who have short consecutive working years ranging from four to five years.

 

Relatively, the ratio of ERP applicants would have to be greater than GenMed.

 

Regarding the issue, Sanofi labor union has requested the management to seek measures to reassign CHC employees to other departments, when the number of applicants is low, conduct ERP only to those who voluntarily applied for, and clarify offer application due date.

 

The union representative said, “CHC is our biggest concern for the ERP.

 

Out of 23 sales executives, at least 18 would have to apply for the ERP, except for the four the management has decided to keep.

 

Because most of them are young, many of them are apparently not planning to apply for the program.

 

We would like for the management to propose other reassignment plan.” Answering to the union’s request, the management official said, “We do not have any other reassignment plan, yet.

 

However, the company does also offer employment referral, training, consulting and other various programs to facilitate employees to transfer.” In 2016, Sanofi and Boehringer Ingelheim have signed a deal to swap CHC businesses.

 

Its major line-ups include the laxative Dulcolax and multivitamin supplements Cenovis.