When corporations merge, there are often significant staff layoffs. Is that going to happen if Drexel merges with MCPHU?
When corporations merge, the acquirer has typically identified cost savings that it believes it can accomplish as a result of the merger; and the acquisition is intended to result in additional profits as a result of those savings. In our case, Drexel has already been managing MCPHU for three years, and MCPHU has already undergone substantial changes to reduce its costs. Because of that, the Drexel trustees are not anticipating that the merger will result in additional savings. For its part, the Administration is always looking to ensure “lean” budgets, and is constantly challenging its departments to cut costs. That will continue. The merger itself, though, is not expected to be the cause of any layoffs.
