Abbott Laboratories said it would cut 3% of its work force in one of the largest layoff announcements in its history, as it tries to wring savings from its recent acquisition of Solvay's pharmaceutical unit.
The Abbott Park, Ill., maker of drugs and medical products had avoided the large-scale cost-cutting measures taken in recent years by rival drug companies that have faced more severe patent expirations and other pressures, though Abbott has made occasional small cutbacks. Abbott has seen revenue and profits grow steadily thanks to rising sales of the anti-inflammatory drug Humira and other products.
The cuts announced Tuesday show that the $6.1 billion Solvay purchase came with areas of overlap, and that Abbott took the opportunity to cut costs. Abbott executives have previously signaled that the deal had the potential for cost savings, but hadn't provided details.
No comments:
Post a Comment