Merck Makes Changes

The drug company Merck and Company announced recently that it would be making cuts in it's costs. They will be making these cuts by getting rid of 7,000 jobs (11% of it's workforce) and closing various branches of the company including a few manufacturing plants, a research site, and two development sites.

How will these changes in Merck affect the overall prescription drug market? How will it effect the job market in the areas where the plants and sites are located? Finally, how will it effect the overall economy?

Link: http://biz.yahoo.com/ap/051128/merck_cuts.html?.v=12