Abbott Laboratories has decided to restructure its U.S. pharmaceutical business to streamline commercial and manufacturing operations, improve efficiencies and reduce costs. The company shared that same as it announced its results for the fourth quarter ended December 31, 2010.
Abbott says the move is in response to changes in the healthcare industry, including U.S. Health Care Reform and the challenging regulatory environment.
Abbott forecasts total specified items associated with this cost reduction initiative over the next several years of approximately $295 million, which includes transfer of product manufacturing to other facilities. These charges include employee-related costs of approximately $135 million, accelerated depreciation of approximately $65 million, and other related exit costs of approximately $95 million mainly related to product transfers.
This move is going to have a huge impact on Pharmaceutical Jobs. As per the information available, Abbott Laboratories said it would eliminate 1,900 jobs. The elimination will be primarily in Abbott’s U.S. pharmaceutical commercial and manufacturing operations over the next several years.