AstraZeneca Annual Report and Form 20-F Information 2011

Delivering our strategyManaging change in our organisationThe composition of our global workforce continues to evolve.Our strategic focus on business growth in Emerging Markets hasmeant the workforce in these areas has grown substantially (as shownin the Sales and Marketing workforce composition figures below).This increase has been accompanied by headcount reductions asa result of our continuing strategic drive to improve efficiency andeffectiveness. Reductions have come about through restructuringin R&D, supply and manufacturing, support functions and our salesand marketing workforce in Established Markets, together with thedisposal of our Astra Tech business. The net effect of these changessince the end of 2006 has been to reduce our total headcount bysome 9,600 from 66,800 to 57,200. This decrease includes areduction of 2,600 positions in 2010 and a further 5,000 in 2011which resulted from our business change plans announced in 2010.In 2011, the most significant business change was the implementationof the R&D strategy announced in 2010, which also involved a numberof site changes. While the net impact by the end of 2011 was areduction of approximately 1,400 roles, almost all R&D employeesworldwide were impacted in some way by this change. In order tomitigate further job losses, over 750 employees were redeployedwhere appropriate skills and capabilities allowed. We were committedto ensuring that AstraZeneca’s core values, robust people policies,consultation infrastructure and prior experience were integratedinto this multi-faceted business transformation. Trade unions andemployee representative groups were involved throughout therestructuring process. With significant investment in outplacementsupport, high levels of success have been achieved in findingemployees alternative opportunities outside AstraZeneca.In February 2012, we announced the next phase of restructuring.Further details are set out in the Our strategic priorities to 2014 sectionfrom page 21.We work to ensure a level of global consistency in managing employeerelations, while allowing enough flexibility to support the local marketsin building good relations with their workforces, taking into accountlocal laws and circumstances. To that end, relations with tradeunions are nationally determined and managed locally in line with theapplicable legal framework and standards of good practice. However,each change programme has its unique challenges and a standardsolution may not always be appropriate. Where this is the case, theappropriate solution is developed through consultation with employeerepresentatives or, where applicable, trade unions, with the aim ofretaining key skills and mitigating job losses.Sales and Marketing workforce compositionEmerging Markets84%16%200269%31%53%47%2007 2011Established MarketsIn addition, there were reductions in the number of roles in severalareas of our sales and marketing organisation in 2011, which wereincremental to the ongoing restructuring programme announcedin 2010. The most substantial reduction was in the US, where weannounced in December that the sales force would be reduced byapproximately 1,150 leadership positions and sales representativeroles by the end of February 2012.42 Delivering our strategy PeopleAstraZeneca Annual Report and Form 20-F Information 2011