The day of reckoning approaches. Abbott management has announced that it will cut 3000 jobs over the next two years as a result of rationalization following its acquisition of Solvay a year ago. Most of the cuts will be felt at former Solvay facilities in the US, Germany, and The Netherlands.
The move will require Abbott to take a one-time $810 to $970 M pre-tax charge. Abbott had hoped to sell the Solvay vaccine business at one time and there was speculation that it would fetch up to $600 M. Now, they will retain the vaccine business - but curiously will close down cell-based manufacture and retain the egg-based processes and research.
Posted by Bruce Lehr September 21st 2010.