SUMMIT, NJ-Drug-maker Merck has done a U-turn away from Summit and instead will consolidate its global headquarters in Kenilworth instead.
This is a last-minute about-face, as Merck had sent layoff notices to workers at the Kenilworth plant two months ago in anticipation of closing the plant.
Today, Merck issued a statement that it had re-evaluated its real estate needs and would close its location here instead. The company also announced plans to cut its 8,500 jobs from its global workforce and reduce its annual costs by $2.5 billion by the end of 2015.
One year ago, the company announced it would shutter its headquarters complex at Whitehouse Station in Reading, where it has been since 1992, and move to Summit. The Whitehouse Station campus will still close, Merck officials said Tuesday, and the move will take place next year.
"Merck determined that it could achieve greater cost savings and operational synergies by closing both its Summit campus and its main Whitehouse Station facility," said spokesperson Lanie Keller.
Summit officials were stunned and disappointed. “It's a very tough blow,” Mayor Ellen Dickson told the Star-Ledger when the news broke Tuesday.
She said Merck is the city's second-biggest employer (its Animal Health and Consumer Care divisions are based in Summit) and its largest single taxpayer. Merck officials indicated they will meet with Summit officials this week to discuss the potential sale and new uses for the property.
The company said some manufacturing and laboratory operations in Summit will be elsewhere in New Jersey or to its facilities in Pennsylvania.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
