Germany-based Merck is set to close the headquarters of its Geneva-based subsidiary Merck Serono as part of a company restructure, culminating in the loss of 580 jobs.
The struggling pharmaceutical company will strip jobs from its biotechnology subsidiary Merck Serono as part of wider restructuring efforts, designed to create a "leaner, more agile organisation".
Merck Serono head Stefan Oschmann said, "The planned measures for Merck Serono's operations in Switzerland are needed to ensure our global competitive position in a rapidly changing market and to secure the long-term future of the company."
"Regrettably, these planned measures include the closure of our headquarters in Geneva, which would result in workforce reductions and the redeployment of certain Switzerland-based functions to other Merck locations," Oschmann added.
Some 750 jobs will be redeployed, with the company continuing to operate out of a single campus located in Darmstadt, Germany, whereas other research and development jobs will be transferred to Boston, US, and Beijing, China.
Further job losses will be felt at production facilities located in Aubonne and Corsier-sur-Vevy, Switzerland, but both centres will remain operational.
The move comes after disappointing financial results for Merck, with the company announcing that its 2011 earnings were disrupted by one-off charges, resulting in a 2.3% reduction in net profits to €617.5m.
Caption: Merck Serono's headquarters, pictured, is now set to close, resulting in the loss of 580 jobs. Photo: Merck Serono