Sources inform ''Globes'' that US pharmaceutical and toiletries giant Bristol-Myers-Squibb (NYSE: BMY) suddenly convened its 50 Israeli employees and notified them that they would be laid off.
Bristol-Myers-Squibb Israel CEO Steve Marick confirmed the report, adding, "We've been restructuring the company to adapt to our business objectives, which have been affected by the local market conditions. The changes included cutting the labor force in Israel. We believe that Israel is an important market for the company, and we're committed to continuing to do business here."
Employees were asked to come to a hotel in Tel Aviv today, where, they were informed, "they would receive a company announcement." When they arrived, they were presented with pink slips, except for employees who work in the clinical trials department. The employees were not permitted to re-enter the company’s offices to retrieve personal belongings, unless they were accompanied by security personnel.
A senior pharmaceutical industry source told "Globes" that the closure was decided upon for economic reasons, specifically a plunge in sales in Israel. It is believed the fall in sales is mostly due to parallel imports by the Klalit Health Fund, which buys drugs from multiple sources.
Sources informed "Globes" that the company is already negotiating with importers in the sector who want to represent it in Israel.
Published by Israel's Business Arena on 5 September 2001