The Shameful Restructuring Plan Of Sanofi

SAnofi restructuring plan
Sanofi restructuring plan

Sanofi’s managers will detail, on Monday June 29, the “strategic roadmap” which includes the elimination of 1,700 jobs in Europe over the next three years and it will put more light on the Sanofi Scandal.

In December, the group had indicated that it wanted to rationalize its spending, with a target of two billion euros in savings by 2022, in particular by halting research into diabetes, one of its traditional core businesses, as well as cardiovascular research. The departure plan resulting will concern mostly permanent contracts, in particular support, sales and research-related platform functions.

Good Financial Results During The First Quarter …

Sanofi reported business net income for the first quarter of 2020 increasing by 15.9% year-on-year to €2.042 billion. Earnings per share for the business were €1.63, which is an increase of 15.6%. Half of this growth is due to the COVID-19 pandemic during which sales of pain medication were boosted with Doliprane.

The group plans to pay a higher dividend than the previous year to its shareholders, totaling almost 4 billion. Against the tide of many companies that have either reduced or canceled their dividend because of the health crisis.

… But The Appetite For Outperformance Does Not Diminish

In a climate of anxiety that is currently causing anxiety for all the group’s employees and one week after the suicide of an employee at her workplace in Gentilly. We should emphasize that it is human beings that are being tossed around without a real financial need.

With this new plan, Sanofi wants to go from a total of 300 drugs to be sold to only a hundred. The group only wants to keep what is most profitable and to withdraw from the least profitable drugs, even if they have a major therapeutic interest.

It’s health that is traded for money. It’s catastrophic, unbearable, unacceptable and shameful. The latest staff reduction plan, announced in June 2019, nearly 470 research and development job cuts in France and Germany.

This is happening while Sanofi receives every year 110 to 120 million euros in research tax credits for the french state.

All this raises many questions about Sanofi scandal: Are laboratories in a blind race for profit, disregarding the well-being of their employees, the health, and the future of citizens?