Jobs and UK top talent on the line in proposed AstraZeneca takeover
14 May 2014
US drugs giant Pfizer’s proposed takeover over of its Anglo-Swedish rival AstraZeneca would be bad news for the availability of top talent in the sector, according to a pharmaceutical recruiter.
Wed, 14 May 2014
US drugs giant Pfizer’s proposed takeover of its Anglo-Swedish rival AstraZeneca would be bad news for the availability of top talent in the sector, according to a pharmaceutical recruiter.
Pfizer’s proposed £63bn takeover bid has raised concerns among politicians and trade unions of jobs losses in the UK, and damage to the country’s science base.
Steve Brown, group director at the Tourstan Group, whose Lifestar brand specialises in the pharmaceutical recruiter, tells Recruiter: “Any big merger will typically result in job losses because of efficiency gains to be had at some point.”
In the case of a successful takeover of AstraZeneca by Pfizer, which resulted in jobs moving to the US, Brown says the response of individuals in AstraZeneca is likely to be mixed, with some deciding to relocate and others staying put in the UK because of problems with family issues, such as schooling.
However, overall Brown says there would be “a huge loss overall, with the movement of skilled staff out of the UK having a negative impact economically for the country and a loss of top talent”.
Brown says this would negate any short-term boost in hiring activity because of the need for people with skills in integration and change management.
Fears over jobs losses were not allayed by Pfizer chairman Ian Read’s appearance in front of the House of Commons Business, Innovation and Skills Committee yesterday, when he said that he could not guarantee that jobs, including in manufacturing, would be lost.
Read told the committee: “I am not saying we will become more efficient without a reduction in jobs… there will be jobs cuts somewhere.” However, he reiterated Pfizer’s general commitment to retain 20% of the combined workforce in the UK for the next five years.
Gareth Lee, head of market access, health economics and outcomes research at Carrot Pharma, says the ripples from Pfizer’s proposed bid are already being felt in the market. As a result of the uncertainty, he says, people in the market who might otherwise be interested in working for the companies concerned “are in limbo because they don’t know what the future holds”.
Should the deal go through, resulting in jobs being relocated to the US, Lee says “there will always be some who go”. However, he adds “overall I don’t think there will be a major shift in the market”.
Lee says that while the current uncertainty is stifling pharmaceutical recruitment, “once a decision is made there will be a flurry of activity”.
Pfizer’s proposed £63bn takeover bid has raised concerns among politicians and trade unions of jobs losses in the UK, and damage to the country’s science base.
Steve Brown, group director at the Tourstan Group, whose Lifestar brand specialises in the pharmaceutical recruiter, tells Recruiter: “Any big merger will typically result in job losses because of efficiency gains to be had at some point.”
In the case of a successful takeover of AstraZeneca by Pfizer, which resulted in jobs moving to the US, Brown says the response of individuals in AstraZeneca is likely to be mixed, with some deciding to relocate and others staying put in the UK because of problems with family issues, such as schooling.
However, overall Brown says there would be “a huge loss overall, with the movement of skilled staff out of the UK having a negative impact economically for the country and a loss of top talent”.
Brown says this would negate any short-term boost in hiring activity because of the need for people with skills in integration and change management.
Fears over jobs losses were not allayed by Pfizer chairman Ian Read’s appearance in front of the House of Commons Business, Innovation and Skills Committee yesterday, when he said that he could not guarantee that jobs, including in manufacturing, would be lost.
Read told the committee: “I am not saying we will become more efficient without a reduction in jobs… there will be jobs cuts somewhere.” However, he reiterated Pfizer’s general commitment to retain 20% of the combined workforce in the UK for the next five years.
Gareth Lee, head of market access, health economics and outcomes research at Carrot Pharma, says the ripples from Pfizer’s proposed bid are already being felt in the market. As a result of the uncertainty, he says, people in the market who might otherwise be interested in working for the companies concerned “are in limbo because they don’t know what the future holds”.
Should the deal go through, resulting in jobs being relocated to the US, Lee says “there will always be some who go”. However, he adds “overall I don’t think there will be a major shift in the market”.
Lee says that while the current uncertainty is stifling pharmaceutical recruitment, “once a decision is made there will be a flurry of activity”.
