Merck to cut 172 IT jobs in Branchburg as part of ongoing restructuring

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Drugmaker Merck is restructuring its information technology organization, resulting in the loss of as many as 172 jobs at its Branchburg site.The Kenilworth-based company announced a major streamlining initiative in October 2013, and said Wednesday that the job cuts are a result of those changes.

“After evaluating all aspects of how it operates as a business, Merck is adopting a significantly streamlined and more flexible cost structure and operating model in response to business challenges and the rapidly changing external environment,” a Merck spokeswoman said. “Restructuring within our IT organization is part of this ongoing, multiyear initiative.”

Merck issued a WARN notice for the Branchburg workers, effective March 16. WARN notices normally cover mass layoffs or facility closings as part of the Worker Adjustment and Retraining Notification Act of 1989.

“Merck recently issued a WARN notice regarding its employees who work in information technology at the Branchburg site,” the spokeswoman said. “Merck is committed to treating these affected employees with dignity and respect during this difficult time, and will provide appropriate support during the transition.”

At the time the operational changes were announced, Merck estimated that it would reduce its global workforce of 81,000 people by about 20 percent by the end of 2015. It estimated pre-tax costs for the program at between $2.5 billion and $3 billion.

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