Pfizer Will Cut 19,500 if Merger Happens; 8,000 if it Doesn’t

Drug Company Pfizer has a $68 billion plan to buy out Wyeth, another big drug company. Some think the merger is exactly what Wall Street needs.

However, in addition to its potential healing effects on wall street, it is likely to negatively effect the New York region, as it will probably result in thousands of layoffs and the closing of one of the two company’s headquarters.

Pfizer’s headquarters are in Manhattan and Wyeth’s is based in Madison, N.J.

Analysts predict that the merger could lead to a burst in pharmaceutical industry takeovers which could aid ailing investment banks, but harm workers.

“This is one of those odd scenarios where increasing the deal flow will likely reduce employment in the pharmaceutical firms,” said Damien Conover, a stock analyst with Morningstar in Chicago. Conover expects another merger soon, which may include big drug companies Schering-Plough or Merck.

Pfizer said it would cut about 19,500 jobs between the two companies over the next three years. That is, if the deal goes through.

According to chief executive for Pfizer, Jeffrey B. Kindler, even without the deal Pfizer will cut 8,000 jobs by 2012.

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