Merck Restructures in China Leading to Job Cuts Affecting Multiple Departments

Merck China has announced significant organizational changes, including the dissolution of its Diabetes Business Unit (DBU) and the establishment of a new Entrepreneurial Business Unit (EBU). This new division will encompass various established products in the fields of infection, oncology, and diabetes. Following this restructuring, Merck has initiated layoffs that impact several departments, particularly those related to antibiotics and anesthetics. Reports suggest that specific regions may see up to 20 layoffs each, with the total number of job losses expected to be higher nationwide.

The severance package for affected employees is set at N+3, with a departure date scheduled for April 30. Employees will have a 1.5-month buffer period before leaving. Notably, Merck China had previously conducted layoffs in November, also offering the same N+3 compensation structure, allowing employees to finish their work by December 31 and receive a 13th-month salary. This consistency in severance packages and buffer periods has somewhat alleviated the pressure on those impacted by the layoffs.

In another significant development, WuXi AppTec announced on March 14, 2025, that Dr. Li Yiping has stepped down as chairman. The current CEO and Executive Director, Liu Min, has been appointed as the new chairman effective March 13, 2025. Dr. Li, a co-founder of WuXi AppTec, had served as CEO and chairman since the company's inception in 2016. Under his leadership, the company successfully launched its second CAR-T cell therapy product, Regkirona, and went public on the Hong Kong Stock Exchange in 2020.

Dr. Li, who has reached retirement age, will continue to support the company as a non-executive director. Liu Min, who joined WuXi AppTec in July 2024, has extensive experience in the pharmaceutical industry, having held senior management positions at notable companies like Innovent Biologics and Roche. His appointment is expected to accelerate the commercialization of existing products while focusing on innovation and market integration.

Additionally, Sinopharm Modern has experienced further executive changes. On March 15, the company announced that Vice President Ni Feng had resigned due to a job transfer and will no longer hold any position. This follows a series of leadership changes, including the resignations of other high-ranking officials in recent months.

Sinopharm Modern, established in 1996 and listed on the Shanghai Stock Exchange in 2004, has faced significant challenges, including the investigation of former executives for serious violations. The company, which is part of the larger Sinopharm Group, has positioned itself as a unified platform for chemical pharmaceuticals, with substantial revenue exceeding 100 billion yuan.

These ongoing changes in leadership and organizational structure reflect a broader trend within the pharmaceutical industry, highlighting the challenges companies face in adapting to a rapidly evolving market landscape.