In February 2010, in conjunction with the integration of the legacy Merck and legacy Schering-Plough businesses, Merck implemented a global Merger Restructuring Program to optimize the cost structure of the combined company.

The program supports Merck's strategic direction as a customer-focused, innovative and diversified global health care company, and enables the company to invest in key areas for future growth, including emerging markets, biologics, vaccines and consumer care.

As part of the program, Merck expected to reduce its total workforce, measured at the time of the merger, by approximately 17 percent worldwide. In addition, we have eliminated more than 2,500 positions that were vacant when the merger took place. These workforce reductions primarily were accomplished by eliminating duplicative positions in the sales, administrative and headquarters organizations, as well as from the sale or closure of certain manufacturing and research and development sites and the consolidation of office facilities.

Specifically, the company announced plans to phase out operations at eight research sites and eight manufacturing sites, as well as to continue consolidating office facilities worldwide. During this period, Merck continued to hire new employees in strategic growth areas of the business.

The company's goal is to create a flexible R&D organization that cultivates scientific innovation, facilitates external collaboration and drives pipeline progress and a reliable, more fully utilized and cost-efficient worldwide manufacturing supply chain to support Merck's broader product portfolio. The company will continue to pursue productivity efficiencies and regularly evaluate its manufacturing supply chain capabilities, which may result in future restructuring actions.

While we believe these actions are necessary to support Merck's competitive advantage, they were difficult decisions that will impact some of our colleagues, their families and local communities. We will implement our restructuring plans with the utmost care and respect for the hard-working and talented employees of Merck. To assist those affected by the restructuring, eligible employees receive benefits and other services, including severance pay, continuance of health care benefits and outplacement services.

For updated information on Merck's restructuring program, please see our most recently filed quarterly and annual reports.