Following news of job cuts in European R&D ops, Sanofi confirms it’s offering US workers an 'early exit'
Earlier in the week we learned that Sanofi was bringing out the budget ax to trim 466 R&D jobs in Europe, retooling its approach to cardio as research chief John Reed beefed up their work in cancer and gene therapies. And we’re ending the week with news that the pharma giant has also been quietly reducing staff in the US, targeting hundreds of jobs as the company pushes voluntary buyouts with a focus on R&D support services.
After getting tipped to a program to eliminate 1,100 jobs, with about 400 so far taking a buyout, a spokesperson for Sanofi told me that the multinational has rolled out an “early exit” plan. And once again the company says that Sanofi wants to streamline operations so it can invest more in their in-house development programs in core fields, which the company has been spotlighting as key for future growth.
Sanofi US offered a Voluntary Early Exit Program (VEEP) for eligible employees across our organization. We are not disclosing the number of employees who accepted VEEP. As we’ve discussed on our earnings calls, Sanofi has returned to growth and with that, we are continuing to focus on strategically aligning our operations and expenses as to be able to invest in key R&D programs that will deliver important new medicines for patients.
The move marks a new era for Sanofi, which has backed away from its biopharma partners like Regeneron and Alnylam. Reed stepped in to take the lead role in R&D from Elias Zerhouni, who first steered the company in a more independent direction.
On Wednesday Sanofi said in a statement that it is cutting its research ranks by 466 in France and Germany while dropping new, in-house cardiology drug research. Existing cardio programs will go forward, says Sanofi, but the pipeline is being cut off at the discovery source. The pharma giant, long known as a laggard in R&D, intends to commit more of its resources to the 4 remaining R&D focuses: cancer, immunology, rare diseases and vaccines.