Abbott to cut 1,900 jobs amid 'significant headwinds'

Share this article:

Abbott will trim its workforce by approximately 1,900 positions in a restructuring exercise intended to streamline commercial and manufacturing operations. Abbott's US pharmaceutical business will shoulder most of the job cuts, which will happen over the next several years, a company spokesperson said.

On a conference call this morning, Miles White, chairman and CEO at Abbott, blamed healthcare reform, European pricing pressures and a regulatory environment that “says no more than it says yes,” for the new cost-cutting measures, which will happen “primarily in the US,” he said. Scott Stoffel, an Abbott spokesperson, said US marketing and sales jobs are one of the areas that will face cuts.

White said 2010 had been “a challenging year for Abbott,” but tempered that assessment with sales figures; Abbott's worldwide sales increased by 13.4% – to $9.97 billion – and worldwide pharmaceutical sales increased by 22.5%, marking a “strong financial performance,” White said. Humira, the company's top-selling product, had sales of $2.9 billion in the US, a 14% increase over 2009 US sales, according to the earnings report.

Company executives on the call said they expect to see continued growth in 2011; the company's acquisition of Solvay Pharmaceuticals, which closed in February of 2010, is expected to generate around 3% of the company's total projected growth in 2011, said Thomas Freyman, EVP, finance and CFO. White repeatedly cited healthcare reform, and specifically Abbott's role in helping to close the Medicare Part D donut hole, as reasons for belt-tightening. “Things like healthcare reform don't come without consequences, if you're a business,” he said on the call.   

Abbott announced that it would cut 3,000 jobs last September, as a result of overlaps related to its acquisition of Solvay, and the US pharmaceutical restructuring and layoffs are in addition to those cuts, which happened mostly outside of the US, White said on the conference call. The company laid of 175 sales reps in the US last April.

Share this article:
close

Next Article in News

Email Newsletters

More in News

Five things for pharma marketers to know: Thursday, August 21

Five things for pharma marketers to know: Thursday, ...

An Ebola survivor is set to leave Emory University Hospital, but the cause of the cure is uncertain, the FDA has approved a new type 1 diabetes test, and the ...

Sanofi expands Gaucher disease portfolio

Sanofi expands Gaucher disease portfolio

The oral medication Cerdelga joins Cerezyme in its Gaucher disease arsenal. Sanofi expects the drug will be priced "on par" with Cerezyme, which goes for around $300,000 a year in ...

Amicus seeks to upset Fabry market

Amicus seeks to upset Fabry market

Phase-III tests indicate patients may be able to switch from injectable enzyme-replacement therapies, like Fabrazyme, to the firm's oral drug.