Abbott Labs to Slash 2,000 Jobs to Cut Costs
Abbott Laboratories plans to eliminate about 2,000 jobs, or 3% of its work force, after efforts to meet U.S. manufacturing standards pushed costs higher and delayed products.
The maker of the antibiotic Biaxin and the nutritional supplement Ensure will take a fourth-quarter charge of $100 million to $125 million to pay severance and write down the value of 10 production and distribution plants.
Third-quarter net income rose to $720.1 million, or 46 cents a share, from $631.4 million, or 40 cents, in the year-earlier period, Abbott said. Sales increased 3.8% to $4.3 billion.
Abbott shares rose 83 cents to $40.30 on the NYSE.
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