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AZ to cut 1,400 manufacturing and supply chain jobs
Friday , November 21, 2008

AstraZeneca has announced the loss of 1,400 jobs in its European manufacturing and supply chain infrastructure.

The company says the introduction of new manufacturing processes has given it the chance make the efficiencies across its supply chain, with the job cuts being made between now and 2013, subject to consultation.

Three European sites are to close: Porrio in Spain, Destelbergen in Belgium and Ume in Sweden, while further job cuts will be made at facilities in Macclesfield in the UK and Sodertlje in Sweden.

The company will set up a regional packing strategy, which it says will improve its ability to respond to customer needs and equip the business for growth in emerging markets.

Meanwhile, AstraZeneca is increasing its investment in the growing Asia Pacific markets, with more being spent on in its Wuxi plant in China to support the company's continuing growth in the region.

The company says part of this investment will provide additional packing and formulation capabilities and enable Wuxi to become the packing centre for Asia Pacific, complementing those in Europe and Latin America.

The new cuts do not affect the company's guidance to investors on restructuring costs, and a full update will be given in January 2009.

"These moves are a continuation of AstraZeneca's programme to improve the organisations productivity and efficiency," said David Smith, Executive Vice President Operations, AstraZeneca.  

"It moves the supply process closer to the customer, responding to their requirements and improving the security of the product wherever it is bought. I realise these changes are difficult for our affected employees, with whom we will be consulting in the coming months. We believe these changes are necessary for the long-term strength of the business."