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Abbott to cut 1,000 jobs from diagnostic unit

Abbott to cut 1,000 jobs from diagnostic unit

Drug and medical device maker Abbott Laboratories said Thursday it will cut 1,000 jobs as part of a multiyear effort to lower spending on its medical testing business.
Abbott said the plan will save the company $150 million before taxes, primarily by transferring manufacturing operations to Europe.
The North Chicago, Illinois-based company disclosed the cost-cutting plans in a regulatory filing Thursday.
Abbott's diagnostic division accounted for $3.2 billion, or 12 percent, of total revenue last year. The company sells a variety of blood and urine tests used to diagnose various diseases and medical conditions.
The company said the actions will cost $370 million before taxes, with about $150 million of that amount falling in the second half of 2008.
Only about 100 jobs will be cut this year, according to a company spokeswoman Melissa Brotz, with all 1,000 jobs eliminated within four years.
The jobs to be cut represent less than 2 percent of Abbott's 68,000-person global work force.
As part of the restructuring plan, Abbott said it will close its Pasadena, California, manufacturing site and eliminate positions at sites California and Illinois.
Most of the operations will be transferred to factories in Ireland and Germany, Brotz said, adding that the company's diagnostic business has been growing faster in Europe than in the U.S.