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Job Cuts in South Pasadena, California
By www.EmploymentCrossing.com
Many employees at Abbott Laboratories will not be happy to hear that the company plans on downsizing. Abbott plans to eliminate 1,000 jobs from its diagnostic unit so it can decrease expenses by $150 million a year.
According to spokeswoman Kelly Morrison, Abbott plans to close its factory in South Pasadena, California. In doing so, it will charge $370 million in the next four years, lay off employees, and transfer jobs to Ireland.
The drug and medical device maker is decreasing its capacity to make liquid ingredients used in laboratory diagnostics tests. The diagnostic unit makes tests for cancer, heart disease, diabetes, and drug abuse. In 2007 this unit accounted for 12.2% of Abbott’s sales.
Morrison says that by downsizing the company’s plan is to strengthen business and increase profits and competition.
Facilities located in Santa Clara, California, and Lake County, Illinois, will also be affected by the layoffs, but are still going to remain open.
It is said that the shift in production will take over three years.
For information on manufacturing jobs in California, click here.
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