Syntex Cuts 1,000 Jobs
Nov. 26, 1992
PALO ALTO, Calif. (AP) _ Syntex Corp. has cut 1,000 jobs, trimming its global workforce to 10,500 in a move expected to save $30 million a year, the drug company announced.
Syntex has more than a dozen drug manufacturing plants worldwide, several of which it plans to completely or partially close over the next two or three years in moves that would cut another 600 jobs.
Wednesday's job cuts will reduce Syntex's San Francisco Bay area workforce by about 350 jobs, or 8 percent, to 3,850 employees.
The company said it took a $180 million charge in its first quarter, ended October 31, to pay for the retrenchment.
Syntex said 500 of the 1,000 job cuts were vacant positions, and another 215 were from early retirements and voluntary resignations. Another 285 people were laid off involuntarily, including some employees who had been with the company for decades.
As part of the announcement, Syntex reported that sales fell 2 percent to $492 million during the first quarter from $502 million for the same period last year.
The company reported a $6 million, or 3 cents per share, net loss for the quarter, compared with a $132 million, or 59 cents profit for the same period a year ago. The loss included the $180 million restructuring charge and another $42 million charge for environmental cleanup costs, as well as a net tax benefit for the quarter of $138 million.
Without the restructuring charge, the company said operating income for the first quarter would have been $87.6 million, a 40 percent drop from the prior year.