Abbott to cut 3000 jobs

Abbott reported Tuesday that it will eliminate 3000 positions, or about 3 percent of its workforce, over the next two years as part of a restructuring plan following its $6.2-billion acquisition of Solvay's drug unit. The drugmaker said the restructuring plan would lead to total charges of about $1.3 billion.
Most of the positions to be eliminated will be in sales, manufacturing, research, and corporate staff, company spokeswoman Kelly Morrison said. Spokeswoman Melissa Brotz indicated that the majority of the job cuts will affect acquired Solvay operations, with most happening in Europe. The restructuring plan includes the closure of Solvay pharmaceuticals former US headquarters by the end of 2011, while about 500 positions at a site in Weesp, the Netherlands will be eliminated, as will 300 jobs in Hannover, Germany. Some employees will be informed immediately, while others will be told in the coming months.
In a regulatory filing, Abbott noted that the majority of the savings are targeted to be realised by 2012. Around $475 million to $640 million of the expected charges are scheduled to occur this year, including $430 million in the third quarter. In addition, the company expects one-time costs of about $135 million in the second half of this year and $175 million next year related to integrating Solvay.
Abbott agreed to buy Solvay in September 2009, gaining full control of the cholesterol drug TriCor (fenofibrate) and a larger presence in emerging markets. At the time, Abbott predicted that Solvay would add more than $3 billion in annual product revenue.

Reference Articles
Abbott to cut 3,000 jobs after Solvay unit acquisition - (Bloomberg)
Abbott expects more than $1B in Solvay charges - (Forbes)
Abbott to cut 3,000 jobs following Solvay deal - (Forexyard)
Abbott Labs to cut 3,000 jobs in integration of Solvay unit (free preview) - (The Wall Street Journal)
Abbott Laboratories - Form 8-K filing - (US SEC)

**Published in "First Word"