New CEO to announce outcome of new restructuring plan in Jan Feb, what's he going to say?
Relocation packages as follows (according to Mene):
1 years salary
Buying your current house off you at market value
Very sweet package!
"AZ has a small unit at the Karolinska Institute"
Any news where in Cambridge the new site will be? Addenbrookes (Cambridge Biomedical Campus) or near the new railway station by the A14? Wouldn't be surprised if the relocation packages were quite frugal. A lot of people to move and job options very limited in the NW.
Wow - this is a brave (or stupid) move by AZ - didn't see it working out like this. However, for those who are selected for the new empire in Cambridge it may not be so bad. One of the (many) reasons I turned down the opportunity to move to AP when they closed down Charnwood is that I didn't want to get stuck there if it all want belly up with limited chances of employment in that part of the country (as has what's just happened and happened to those in CVGI laid off last year). Assuming AZ offer a decent relocation package, this essentially means you've got a job for the next few years while the new site is built, AZ will then pay to move you to the Cambridge area (which is probably the best part of the country to be in if you want to stay in the pharma/biotech. industry) and if things don't work out you'll be in a much better location to find another job without having to fund the move yourself.
AZ has a small unit at the Karolinska Institute.
You really think they will transfer 1600 jobs with all that talent in Cambridge sitting in 'vibrant' biotechs - do you really think there research focus will be what it is now? Wake up.
All R&D functions from AP to be relocated to Cambridge. That includes GSA and DMPK.
Personally i'm excited by the prospect of a lump sum and a jolly in cambridge for a year or two
Commiserations to all those at AP; at least to some - other s who thought it would never happen need to understand that corporate loyalty counts for nothing.
Really sorry for those who moved from Charnwood a couple of years back. As to Sweden - well as you can see productivity is not a focus for AZ.
What about global safety assessment? Last year when Södertälje was removed, GSA was supposed to be run fr.o.m. AP?
Lund was in Medicon Valley. Ideally placed to be in the thick of emerging biotech. Charnwood is near BioCity. Södertälje - Karolinska Institutet. The wrong sites were abandoned by the last SET.
"200 FTEs affected in Mölndal"
Any more details? CVGI? Other functions?
Why abandon state of art facilities and then recreate them at a cost of 500 Million? Am I missing something. I think Soriot thinks the AP culture and mind Set is so toxic he thinks the only way forward is a complete fresh start on a new site. I do not expect many senior AP managers to be moved to Cambridge
Should have kept shares good dividend and City will like this move once bolt on additions start to be made. AZ Is Not going bust
" leaving useless Molndal CVGI untouched is strange. Why not re-build it all (R&I is still rebuilding there)?"
That is making an assumption that cvgi is untouched. We heard that ria will be a focus. We have not heard the readout from the functions. There could be some shuffling of the deck or reallocation of resources. if it were my money, I'd spend it where I wanted to improve, cutting resources isn't going to make cvgi stronger.
Yes - but everyone is cutting or freezing jobs so unless you are really lucky, have senior management credentials or are in-the-know its a catch22. AZ have offered so voluntary redundance so many time in the last few years it'll have to be mostly 'compulsory' voluntary losses amongst those who can't move again. For many relocation to Cambridge will be a good financial move to put them in the right place to hop over to other biotech companies.
sold my shares - shall i move my pension?
Wonder if the relocation package will be as sweet as last time ?
AP scientists - don't move for AZ - move for the job you want not one they want to give you. There's life outside AZ they don't own you.
What happening to New Opportunities iMed?
"No cuts at all in Mölndal? Seriuosly?"
Actually 200 FTEs affected in Molndal.
He's looked in the cookie jar and there is little left to pay the rent.
This one makes interesting reading:
It appears that Pascal is stripping AZ of its unneccessary trimmings, including the fancy Paddington offices... smart move?!
....and AP is sooooooo English"
Quote "R+D lab knows it's a place where English is a second language, they flood the place with people from countries where lying and deception is the norm."
Have you ever been to AP? Lying and deception is the norm there - Backstabbers galore!
Although I sympathize with all those who now lose their jobs, I think this is quite a clever move, albeit five years too late. Getting rid of all the built-in rigidity @ AP is good, but leaving useless Molndal CVGI untouched is strange. Why not re-build it all (R&I is still rebuilding there)?
Also, I can't see the numbers adding up, there will be fall in revenue in the order of $$$ Billions and this will save 190 Millions/year? Anyone figured out how this will help to reduce all the $$$ in costs?
Oh, come on! they hire their PhD's through temp agencies and from custom synthesis sweat shops at the Waltham site. How can you take them seriously? How can you take any of these big pharma's seriously? They cry the blues about their pipelines being empty yet they view R+D as some kind of a necessary evil. Anyone that's ever seen the inside of any big pharma R+D lab knows it's a place where English is a second language, they flood the place with people from countries where lying and deception is the norm.
Tell it to someone that doesn't know any better.
1600 people are not being relocated - 1600 ROLES are being relocated. Not the same. Essentially, this means almost all R&D staff currently employed at AP will lose their jobs - either because they cannot relocate to Cambridge or they will not wanted in the new organisation. Sad.
'Bodge-it and Scarper'...
Please God, no, not a new name... you'll start a landslide of comments about appropriate new names...
On a positive note, a new name might be a good idea, as long as it isn't made up of two (or more) existing company names...
Closing Charnwood was part of the old management's strategy and that has now changed. Under the Brennan regime R&I would likely have gone this time around. The new company begins to look like a mid-range player and is becoming so different to the tarnished image of AZ that a new name is a good idea.
1) Close Charnwood (where expertise in respiratory existed) - (where hundreds of $M were invested prior to closure)
2) Close AP RD and move to a facility to be built in Cambridge.
1) loss of $$$$$$$$$$
2) loss of talents
3) loss of engagement
3) loss of time
For how long has the AZ website tagged the company as 'a global biopharmaceutical company'? Elsewhere biopharma is edging back to sm & rdd. Leading from the back again AZ.
How do ypou move 1600 people to Cambridge without seious expansion onto the car park at Medi or buiy/leasing expensive extra facilities roughly the size they'll be vacating at AP? Sounds like someone wants to be properly in the UK biohub regardless of cost or logic!
Its expensive leaving real estate unused at AP
What about Bangalore?
The three strategic sites will be supported by other existing AstraZeneca facilities around the world, including Boston, Massachusetts, US which will continue to be a centre for research and development, with a primary focus on small molecules
What about Boston site?
Is the new centre in Cambridge going to be located with Medi?
US side of things:
WILMINGTON, Del., Mar 18, 2013 (BUSINESS WIRE) -- AstraZeneca AZN -0.97% announced today that Gaithersburg, Md., will be one of three global research and development centers to improve pipeline productivity and to establish the company as a global leader in biopharmaceutical innovation. Additionally, US-based global marketing and specialty care commercial functions will be centered in Gaithersburg, currently the site of MedImmune's headquarters and the primary location for AstraZeneca's biologics activities.
The relocation of research and development, global marketing and specialty care positions from Wilmington will be carried out through 2015. The North America commercial headquarters, along with several corporate-based support functions, will remain in Wilmington.
The changes are part of AstraZeneca's announcement to invest in strategic research and development centers in Cambridge, UK; Gaithersburg, Md.; and Molndal, Sweden. The proposals are designed to co-locate teams to improve collaboration and put science and the patient at the heart of everything the company does. The changes will also simplify the company's global site footprint.
Pascal Soriot, Chief Executive Officer, AstraZeneca said: "The changes we are proposing represent an exciting and important opportunity to put science at the heart of everything we do because our long-term success depends on improving R&D productivity and achieving scientific leadership. This is a major investment in the future of this company that will accelerate innovation by improving collaboration, reducing complexity and speeding up decision-making. The strategic centers will also allow us to tap into important bioscience hotspots, providing more of our people with easy access to leading-edge academic and industry networks, scientific talent and valuable partnering opportunities."
The consolidation of AstraZeneca's global R&D footprint will have an impact on sites in the United States. About 1,200 positions will leave Wilmington, while there will be an increase of about 300 positions in Gaithersburg. The changes announced today will lead to an estimated overall reduction of about 650 positions in the US, while around 170 will relocate to other AstraZeneca sites in the US or overseas.
"I recognize that our plans will have a significant impact on many of our people and our stakeholders at the affected sites. We are fully committed to treating all our employees with respect and fairness as we navigate this important period of change," Pascal Soriot said.
AstraZeneca will provide an update on its business strategy and implementation plans at its Investor Day presentation on Thursday, March 21.
Thinking of all my former collegues who moved their familiies to the North West to work at AP when Charnwood shut. Unbelievable you are being put through this again. So sorry for you all.
Also to many folk at AP I had the pleasure of working with over the years, thinking of you.
If it is any compensation, there is a good life outside AZ, cut your losses and look forward to the future.
From the horses mouth
Alderley Park, Cheshire: Under the proposals, research and development work will no longer be carried out at the Alderley Park site which today houses around 2,900 employees. Approximately 1,600 roles will relocate from Alderley Park over the next three years, with a significant majority going to the new centre in Cambridge and the remainder to the company’s nearby Macclesfield facility or sites overseas. At least 700 non-R&D roles are expected to remain at the site. AstraZeneca is committed to exploring all options to ensure that Alderley Park has a successful future.
part of the news release
Alderley Park, Cheshire, UK: Under the proposals, research and development work will no longer be carried out at Alderley Park. Approximately 1,600 roles will relocate from Alderley Park, with the significant majority going to the new centre in Cambridge and the remainder to the company's nearby Macclesfield manufacturing facility or other AstraZeneca sites overseas. At least 700 non-R&D roles are expected to remain at Alderley Park. AstraZeneca is committed to exploring all options to ensure that Alderley Park has a successful future.
So what's left at AP ? Safety Assessment, Admin ?
Wonder if the R&D at Macc is staying?
Guessing Molndal survives courtesy of the fact that decision making abilities of seniors would look even worse if they were to shut down R & I there having only moved it there hook, line and sinker less than three years ago...
LONDON, March 18 (Reuters) - AstraZeneca is to cut around 1,600 jobs as it overhauls it research operations and consolidates drug development work in three major centres.
The move will see the end of drug research at the company's Alderley Park facility in northern England, for many years a hub of the group's R&D efforts, the drugmaker said on Monday.
New CEO Pascal Soriot, who will present his detailed strategy plans for the group to investors on March 21, said the programme would lead to $1.4 billion in one-time restructuring charges. Annualised benefits of the overhaul are expected to reach approximately $190 million by 2016.
"R&D to finish at Alderley Park. New UK HQ in Cambridge"
Thinking of all of my former colleagues that showed some loyalty to the company and moved their families North West and those that were already there. Look at this as an opportunity to do something else; find a positive in what might feel like the worst day ever.
No R&D at Alderley or NO Alderley ?
Looks like Respiratory is going to be a focus for AZ ! Shame they shut a site with the expertise !!!! Good news for all ex Charnwood Swedes.
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