Pfizer Inc. (PFE), the drugmaker that’s fired 26,000 workers in three years, is cutting its employee severance package after May 14, according to an internal memo.
Chief Executive Officer Ian Read, who took over in December 2010, has pledged to cut $1 billion from operations in 2012. The memo says basic severance pay will be lowered to eight weeks from 12 for U.S. workers, and that health benefits will last eight weeks rather than a year. Employees get additional weeks of pay and health insurance the longer they’ve been with the company. The memo was supplied to Bloomberg by a Pfizer employee, and confirmed by Joan Campion, a spokeswoman.
“Our benefits continue to be competitive when compared against those offered by our industry peers and other leading global companies,” the memo said. “We will continue to analyze all of our benefit programs to support our long-term competitiveness and the sustainability of benefits in today’s challenging business environment.”There's really not much to be said here, other than the fact that the severance packages used to be fairly generous, especially with the health insurance. Not anymore, really.
It brings to mind (on this jobs report Friday) how the long-term unemployed are still hurting during this recovery. Assuming that it takes an optimistic (?) 6 months to find a position, that's 4 months without coverage. Ugh.