By Helena Smolak

Germany's Merck KGaA is contemplating job cuts within its electronics division as part of a cost-saving initiative prompted by a market downturn that is lasting longer than the industry expected.

The German pharmaceutical and chemical conglomerate said Monday that talks with the works council and employee representatives are in progress.

Merck is seeking to increase efficiencies during an electronics downturn, and while it aims to offer internal job placements, can't rule out personnel cuts, a spokesperson said.

The news was initially reported by German newspaper Frankfurter Allgemeine, which indicatedMerck was targeting cutting costs by 60 million euros to 90 million euros ($64.4 million-$96.6 million) in 2024.

Layoffs at Merck's headquarters in Darmstadt are ruled out by an employment guarantee until the end of 2025, the company said.

Write to Helena Smolak at helena.smolak@wsj.com

(END) Dow Jones Newswires

November 06, 2023 06:05 ET (11:05 GMT)

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