Abbott restructures to optimise efficiencies
To coincide with its third quarter results, which saw increases in both sales and earnings for the period ended 30 September, Abbott Laboratories has announced restructuring plans to achieve greater operating efficiencies. The company will streamline global manufacturing operations and eliminate excess capacity, while at the same time investing some US$450m (€447m) to expand current manufacturing facilities and build new operations to support future products emerging from the company's development pipeline.
Abbott has identified additional synergies in its international operations arising from the integration of Knoll, and says it is responding to difficult economic conditions that are affecting business performance, particularly in Latin America. Abbott's diagnostics division will also be restructured around its four product lines immunochemistry, hematology, molecular and blood glucose monitoring. The new structure will 'create a more agile and customer-focused division, enabling it to meet current business needs, while improving productivity, customer service and new product time to market'.
The restructuring plans include a net reduction of approximately 2,000 employees, representing 3% of the company's current global workforce of 70,000. 'We continue to make progress on our long-term strategic objectives to build a significant presence in higher-growth markets, such as immunoscience and vascular products,' said Miles D. White, chairman and ceo. 'This restructuring will improve our global competitiveness and enhance our ability to invest in promising technologies.'
Abbott's worldwide sales in the third quarter were $4.341bn (€4.307bn), up 3.8% from $4.181bn (€4.148bn) sales in the third quarter of 2001.