Tough business climate roils IMS
IMS Health said it intends to lay off 10% of its workforce, or as many as 760 employees worldwide. The firm will take a 2007 Q4 charge of $86-$90 million to account for the terminations.
To be completed by year's end, IMS said the layoffs are designed to help survive a tough business climate. Last year many of its potential clients announced layoffs, including Pfizer, AstraZeneca, Johnson & Johnson, Bristol-Myers Squibb and Amgen. Meanwhile, IMS saw moderating revenue growth and pressure on operating margins.
In an SEC filing, IMS said its restructuring would impact 1,050 employees. (The firm may add back some new positions in higher growth markets.) Those who do statistical and analytical work, as well as consultants, will be affected, as well as marketing, finance and administration.IMS, which operates in more than 100 countries with about 7,600 employees worldwide, had 2006 revenue of $2 billion.