Sanofi planning to cut up to 1,680 jobs in Europe

Sanofi said in December it was targeting $2.24 billion in cost savings by 2022. (AFP)
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Updated 26 June 2020

Sanofi planning to cut up to 1,680 jobs in Europe

  • Sanofi would be focusing on efficiency gains through increased digitalization and IT outsourcing

PARIS: Sanofi said on Friday it is planning to slash up to 1,680 jobs in Europe, confirming what two sources familiar with the matter had previously said.
One source said the cuts would be carried out over three years. The sources declined to be identified because the plan had not been announced officially.
Reuters reported on Thursday that Sanofi was considering cutting hundreds of jobs and would discuss potential steps with staff representatives on Friday and June 29.
A source said Sanofi would be focusing on efficiency gains through increased digitalization and IT outsourcing.
The plans are part of a broader strategy outlined in December by the group’s chief executive Paul Hudson, who joined Sanofi in September last year.
In December, Sanofi said it was targeting $2.24 billion in cost savings by 2022.


Turkey on brink of recession as economy collapses

Updated 13 August 2020

Turkey on brink of recession as economy collapses

  • Consumer debt has increased by 25 percent to more than $100 billion in the past three months

JEDDAH: President Recep Tayyip Erdogan’s popularity is plunging in lockstep with Turkey’s collapsing economy and the country is on the verge of a potentially devastating recession, financial experts have told Arab News.
The value of the Turkish lira has fallen to 7.30 against the US dollar and the central bank has spent $65 billion to prop up the currency, according to the US investment bank Goldman Sachs.
Consumer debt has increased by 25 percent to more than $100 billion in the past three months as the government moved to help families during the coronavirus pandemic, but the result has been a surge in inflation to 12 percent.
With the falling lira and increased price of imported goods, the living standards of many Turks who earn in lira but have dollar debts have fallen sharply.
The economy is expected to shrink by about 4 percent this year. The official unemployment rate remains at 12.8 percent because layoffs are banned, although many experts say the real figures are far higher.
To complete the perfect storm, tourism revenues and exports have been decimated by the pandemic, and foreign capital has fled amid fears over economic trends and the independence of the central bank.
Wolfango Piccoli, of Teneo Intelligence in London, said logic dictated an increase in interest rates but “this is unlikely to happen.”
Piccoli said central bank officials would strive to avoid an outright rate hike at their monetary policy meeting on Aug. 20. “A mix of controlled devaluation and backdoor policies, such as limiting Turkish lira’s liquidity, remains their preferred approach,” he said.
There is speculation of snap elections, and Erdogan’s view is that higher interest rates cause inflation, despite considerable economic evidence to the contrary.