In an announcement Wednesday, North Chicago, Illinois-based Abbott Laboratories announced that it was eliminating 1,900 employees in order to keep its revenue up after reporting a 6.4% drop in the fourth quarter. This round of cuts was about 2% of its workforce and follows a cut of 3% made in September 2010 after the company acquired Solvay Pharmaceuticals.
According to ABC News, the majority of these cuts will occur in American marketing and manufacturing positions and is expected to save the company $200 million annually. The reasons for these cuts are cited in BusinessWeek as a response to the health care reform law passed last year, tough Food and Drug Administration regulations, and the slow recovery of the global economy.
Although the company has experienced some hardships due to events like the recalling of diabetes test strips for false readings and Similar for possible insect contamination, it has still managed to increase its revenue each year and keep its financial outlook strong.
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