Maven: The Burden I Must Bear

Pfizer (PFE) played the business media like a fiddle this week, and it was a sight to behold. Those who teach the dark art of public relations should use the way the company redefined the discussion in the space of several days as a case study. But business journalists should have done a better job connecting what happened on Tuesday to what happened on Thursday. Since they didn't, let The Business Press Maven pick up the slack and explain. Such is always my burden.

On Tuesday, Pfizer announced some grim news: It was cutting 2,000 salespeople, about 20% of their force. While Wall Street can greet news of cost cuts warmly, there was also recognition that a real change was afoot here. A growing sales force was always a big part of a drug company's bread and butter. They'd push product, which would raise profits. The addition of salespeople to a drug company employment roll was historically a sign of coming profits.

In this case, though, the cutting of the once-vaunted sales force was also seen on the Street as a turning point. Pfizer, struggling with dearly departed patents and their inability to push revenue higher, was starting to throw in the towel on what was once an industry strength. Its story had become one of cost cuts, not progress.