Pfizer to outsource 30 per cent of manufacturing to Asia, cut 10,000 jobs

04 December 2007

Mumbai: Pfizer Inc, the world''s largest pharmaceutical manufacturer, is planning to cut costs by outsourcing as much as 30 per cent of its manufacturing to facilities in Asia, mainly India and China.

Pfizer, which currently outsources nearly 15 per cent of its manufacturing capabilities, plans to double that figure, the New York-based company disclosed at an investor presentation in Hong Kong.

"It makes sense to outsource to lower-cost areas, from New York or elsewhere in the US to Asia," said Martin Mackay, head of Pfizer''s global research and development.

The move is Pfizer''s another effort to slash cost and China is considered to be one of the most important target countries to fulfil the plan, according to Mackay.

Pfizer, which has major operations in New Jersey, expects to save $2 billion by cutting 10 per cent of its global work force, or about 10,000 jobs.

Alternatively, Pfizer would expand its research and development spending in China, India, Japan and South Korea. The company currently has 80 research studies under way in Asia, Mackay pointed out.