A key official in France is keeping up pressure on Sanofi about its planned work force reductions in the country, sticking to the position that the drug giant ($SNY) hasn't done enough to protect jobs. And French Industry Minister Arnaud Montebourg makes clear in reports today that he isn't satisfied with how the company plans to secure the future of its R&D site in Toulouse.
Montebourg has been a thorn in the side of Sanofi. Early this week Sanofi softened its stance on job cuts in France, saying the company would seek to shrink its work force in the country by 900 jobs through early retirements and voluntary moves and transfers in the next few years, as opposed to the 2,300 to 2,500 jobs at the company previously estimated to be on the chopping block. Yet the minister and others keep harping on Sanofi's unresolved plan for its Toulouse site, where 600 additional jobs hang in the balance.
Sanofi wants to part ways with research in Toulouse, and said earlier this week that it would work with stakeholders in the coming months to solidify plans to keep the operation alive, Reuters reported. That too fell short with Montebourg and unhappy Sanofi workers and labor officials.
"Trade unions are right to say this is too much," Montebourg told BFM television, as reported by Reuters. "The government thinks this is too much and we want guarantees for Toulouse."
Sanofi CEO Chris Viehbacher, who has reportedly met with the industry minister, has found resistance in his strategy to double down on productive R&D centers while making cutbacks at those that fail to meet expectations. Yet the CEO isn't known to back down from a mission, as shown with his incessant pursuit of biotech giant Genzyme throughout parts of two years, resulting in a $20.1 billion buyout in 2011 and the departure of the biotech's long-time chief, Henri Termeer.
- see Reuters' article